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Question #3: Prepare the Statement of Cash Flow for December 31 for Gazelle Corporation GAZELLE CORPORATION Comparative Balance Sheets December 31 GAZELLE CORPORATION Income Statement For Current Year Ended December 31 Current Year Prior Year $1,185,000 595,000 590,000 $123,450 77.100 240,600 15 100 456,250 262,250 (110,750) 5607 750 $ 38,600 362,850 Sales. Cost of goods sold Gross profit Operating expenses Depreciation expense........ Other expenses Total operating expenses. $ 61,550 80.750 250,700 17,000 410,000 200,000 (95,000) $515,000 401,450 188 550 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum.depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities Equity Common stock. $5 par Pald-in capital in excess of par, common stock. Retained earnings.. Total abilities and equity Other gains posses) Loss on sale of equipment... Income before taxes. Income taxes expense Net Income . 12.100 186,450 28,350 $ 158.100 $ 17,750 15,000 32.750 100,000 132,750 $102,000 10,000 112,000 77,500 189,500 . 215,000 200,000 Additional Information on Current-Year Transactions a. The loss on the cash sale of equipment was $2.100 detalls in b. Sold equipment costing $51,000, with accumulated depreciation of $22,890, for $26,050 cash, c. Purchased equipment costing $113,250 by paying $43,250 cash and signing a long term note payable for the balance d. Borrowed 55.000 cash by signing a short-term note payable e. Pald $47.500 cash to reduce the long-term notes payable Issued 3,000 shares of common stock for $15 cash per share 9. Declared and paid cash dividends of $53,600 0 30.000 230,000 5607,750 125 500 $515,000 Required 1. Prepare a complete statement of cash flows using the Indirect method for the current year. Disclose any noncash investing and financing activities in a

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