Question 2

Comparative Balance Sheet
Shiner Corporation
Assets	Dec 31, 1996	Dec 31, 1995
Cash	$37,000	$49,000
Accounts Receivable	$26,000	$36,000
Prepaid Expenses	$6,000	$0
Land	$70,000	$0
Building	$200,000		$0
Accumulated Depreciation	$11,000	$189,000	$0
Equipment	$68,000		$0
Accumulated Depreciation	$10,000	$58,000	$0
Total Assets	$386,000	$85,000
Liabilities and Stockholder Equity
Accounts Payable	$40,000	$5,000
Bonds Payable	$150,000	$0
Common Stock	$60,000	$0
Retained Earnings	$136,000	$20,000
Total Liabilities and Stockholder Equity	$386,000	$85,000

Income Statement
Shiner Corporation
Revenue	$492,000
Operating Expenses	$269,000
Depreciation	$21,000	$290,000
Income before Income Taxes	$202,000
Income Tax Expense	$68,000
Net Income	$134,000

Additional information: During the year Shiner Corporation paid dividends of$18,000. Shiner also issued $150,000 in bonds.    Copy and complete the statement below: Statement of Cash Flows Cash Flow from Operating Activities Net Income Adjustments to reconcile net income to net cash Depreciation Accts Receivable decrease Prepaid Expense increase Accts Payable Increase Net cash provided from Operating Activities Investing Activities Land Purchase Building Purchase Equipment Purchase Financing Activities Dividend payment to shareholders Issuance of Bonds Payable Net Decrease in Cash Cash Jan 1, 1996 Cash Dec 31, 1996