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Abrahams Manufacturing Company Balance Sheet for 1/31/2017 and 1/31/2018 2017 2018 Cash $ 89,000 $ 102,000 Accounts receivable 64,000 69,800 Inventory 112,000 104,200 Prepaid expenses 10,000 10,000 Total current assets $ 275,000 $ 286,000 Gross plant and equipment 238,000 311,000 Accumulated depreciation (40,000) (65,000) Total assets $ 473,000 $ 532,000 Accounts payable $ 85,000 $ 95,000 Accrued liabilities 68,000 58,000 Total current debt $ 153,000 $ 153,000 Mortgage payable 70,000 0 Preferred stock 0 126,000 200000 69,800 64,000 112,000 10,000 104,200 10,000 $ 275,000 238,000 (40,000) $ 286,000 311,000 (65,000) $ 473,000 $ 532,000 Accounts receivable Inventory Prepaid expenses Total current assets Gross plant and equipment Accumulated depreciation Total assets Accounts payable Accrued liabilities Total current debt Mortgage payable Preferred stock Common stock Retained earnings Total debt and equity $ $ 85,000 68,000 95,000 58,000 $ 153,000 70,000 0 205,000 45,000 $ 153,000 0 126,000 205,000 48,000 $ 532,000 $ 473,000 Abrahams Manufacturing Company Income Statement for the Year Ended 1/31/2018 2018 Sales $ 189,000 Cost of goods sold 53,000 Gross profit 136,000 Selling, general and administrative expenses 45,000 Depreciation expense 25,000 Operating income 66,000 Interest expense 3,800 Earnings before taxes $ 62,200 Taxes 19,904 Preferred stock dividends 12,000 $ 30,296 Earnings available to common stockholders S Additional Information 1. The only entry in the accumulated depreciation account is for 2018 depreciation. 2. The firm paid $27,296 in common stock dividends during 2018. values.) FREE CASH FLOWS After-tax cash flows from operations $ After-tax cash flows from operations Change in net operating working capital S Increase in net operating working capital Free cash flows A

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