Balance Sheet January 1, 2019 Assets Current assets: Cash Accounts receivable Inventories Prepaid items Total current assets $ 1,900 5,100 13,900 1,300 $22,200 Property, plant, and equipment: Land Buildings Equipment Less: Accumulated depreciation Total property, plant, and equipment $12,000 $60,000 20,000 $ 80,000 (29,000) 51,000 $63,000 $ 7,100 $92,300 Patents (net) Total Assets Liabilities Current liabilities: Accounts payable Income taxes payable Miscellaneous payables Total current liabilities $ 5,500 4,100 1,200 $10,800 Long-term liabilities: 10% bonds payable (due 12/31/2025) Less: Discount on bonds payable Total liabilities Shareholders' Equity Preferred stock, $100 par Additional paid-in capital on preferred stock Common stock, $10 par Additional paid-in capital on common stock Retained earnings Total shareholders' equity Total Liabilities and Shareholders' Equity $ 15,000 (1,000) 14,000 $24,800 $ 17,000 1,500 $14,000 11,200 $18,500 25,200 23,800 $67,500 $92,300 Statement of Cash Flows For Year Ended December 31, 2019 Operating Activities: Net income $ 10,000 Adjustments for differences between income flows and cash flows from operating activities: Add: Depreciation expense Patent amortization expense Loss on sale of land 5,100 600 400 1,100 3,010 190 200 Decrease in accounts receivable (net) Decrease in inventories Increase in income taxes payable Increase in miscellaneous payables Bond discount amortization Less: Gain on sale of equipment Gain on sale of patent Increase in prepaid items Decrease in accounts payable Net cash provided by operating activities 100 (180) (1,100) (120j (400) $ 18,900 Investing Activities: Purchase of building by issuance of mortgage and cash Less: Issuance of mortgage Payment for purchase of building Proceeds from sale of land Proceeds from sale of equipment Proceeds from sale of patent Net cash used for investing octivities $143,000) 20,000 $123,000) 2,800 500 2,100 (17,600) Financing Activities: Proceeds from issuance of common stock (150 shares) Payment of dividends Net cash used for financing activities Net decrease in cash (see Schedule 1) $ 3,000 _ (5,000) (2,000) Cash, January 1, 2019 1,900 Š 1,200 Cash, December 31, 2019 Schedule 1: Investing and Financing Activities Not Affecting Cash Investing Activities: Acquisition of land by issuance of preferred stock (40 shares) Financing Activities: Issuance of preferred stock to acquire land $(4,800) 4,800