A B C D E F 1 Note: To complete the assignment, go to the worksheet tab labeled Cash Flow 2 and complete the statement of cash flows. 3 4 INNOVATION ELECTRONICS, INC. 5 Income Statement 6 For the Year Ended December 31, 20X2 7 Net sales 8 Gain on sale of land $ 2,430,000 6,500 10 Total revenues 2,436,500 11 12 Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense $ 1,565,000 598,000 16,000 17,000 63,000 13 14 15 16 17 18 19 Total expenses 2,259,000 20 21 Net income 177,500 22 | 23 24 25 Income Statement Balance Sheet Cash Flow ... ... A B D 1 Note: To complete the assignment, go to the worksheet tab labeled Cash Flow 2 and complete the statement of cash flows. 3 Note: Additional information is included at the bottom of the statement. 4 INNOVATION ELECTRONICS, INC. 5 Balance Sheet 6 At December 31 7 20X2 20X1 8 Assets 9 Current assets: Cash Accounts receivable Inventory Prepaid insurance 14 Long-term assets: Investments Land 184,420 | $ 68,700 134,500 2,980 25,740 83,000 128,000 4,560 10 11 12 13 211,000 208,500 203,000 120,000 255,000 203,000 (101,500) 15 16 Equipment Accumulated depreciation 17 18 (117,500)| 19 20 Total assets 895,600 | $ 717,800 21 22 Liabilities and Stockholders' Equity | 24 Current liabilities: Accounts payable 23 26,500 | $ Balance Sheet Cash Flow 25 81,000 ... Income Statement ... A в D 21 22 23 Liabilities and Stockholders' Equity 24 Current liabilities: Accounts payable Interest payable Income tax payable 28 Long-term liabilities: Notes payable 30 Stockholders' equity: Common stock Retained earnings 26,500 | $ 3,400 30,200 81,000 2,300 32,500 25 26 27 29 255,000 242,000 273,000 307,500 230,000 130,000 31 32 33 34 Total liabilities and stockholders' equity 895,600 $ 717,800 35 36 Additional Information for 20X2: 37 1. Assume that all increases and decreases in long term assets, long term liabilities, 38 and common stock are a result of cash transactions. 39 2. Land costing $46,500 was sold, resulting in a gain of $6,500. No other 40 long-term assets were sold. 41 3. Additional long-term investments were purchased. 42 4. An additional long-term note payable was signed. No repayments on 43 notes were made. 44 5. Additional common stock was issued. 45