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8. Use the following BS and IS to create a full Statement of Cash Flows....

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Accounting

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8. Use the following BS and IS to create a full Statement of Cash Flows. Format the CFO using the Indirect Method: Income Statement Sales Cost of Goods Sold Gross Profit Misc Expense Salary Expense Depreciation Expense Amortization Expense Rent Expense Operating Profit Interest Expense Income Before Tax Tax Expense Net Income $ 20,000 8,000 $ 12,000 980 4,470 2,865 225 1,800 $ 1,660 2,400 $ (740) Balance Sheet 2019 2018 Change Cash $ 6,320 5,100 1,220 Accounts Recivable 4,140 5,640 (1.500) Inventory 6,200 7,200 (1,000) Prepaid Rent 420 2,220 (1,800) Total Current Assets $ 17,080 $ 20,160 PPE 42,900 42,900 Accum Depr. 12,870 10,005 2,865 Intangible Assets 2,025 2,250 (225) Long-term Investments 4,965 4.965 Land 2,000 2,000 Total Assets $ 56,100 $ 60,270 Accounts Payable 1,500 6,500 (5,000) Wages Payable 1,730 (1,730) Interest Payable 360 560 (200) Total Current Liabilities $ 1,860 $ 8,790 Bank Loan 4,500 4,500 Bonds Payable 19,500 19,500 Total Liabilities $ 25,860 $ 32,790 Common Stock 16,500 12,000 4,500 Retained Earnings 13,740 15,480 (1,740) Total Shareholders Equit $ 30,240 $ 27,480 Total Llabilities and SE $ 56,100 $ 60,270 $ (740)

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