Note: To complete the assignment, go to the worksheet tab labeled Cash Flow and complete the statement of cash flows. INNOVATION ELECTRONICS, INC. Income Statement For the Year Ended December 31, 20X2 Net sales Gain on sale of land $ 2,430,000 6,500 Total revenues 2,436,500 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 Total expenses 2,259,000 Net income 177,500 Income Statement Balance Sheet Cash Flow A B C Note: To complete the assignment, go to the worksheet tab labeled Cash Flow and complete the statement of cash flows. Note: Additional information is included at the bottom of the statement. INNOVATION ELECTRONICS, INC. Balance Sheet At December 31 20X2 20X1 Assets Current assets: Cash Accounts receivable Inventory Prepaid insurance Long-term assets: Investments 184,420 | $ 68,700 134,500 2,980 25,740 83,000 128,000 4,560 Land Equipment Accumulated depreciation 211,000 208,500 203,000 (117,500) 120,000 255,000 203,000 (101,500) Total assets 895,600 | $ 717,800 Liabilities and Stockholders' Equity Current liabilities: Accounts payable 26,500 | $ 81,000 • . Income Statement Balance Sheet Cash Flow ... ... A B Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings 26,500 $ 3,400 30,200 81,000 2,300 32,500 255,000 242,000 273,000 307,500 230,000 130,000 Total liabilities and stockholders’ equity 895,600 | $ 717,800 Additional Information for 20X2: 1. Assume that all increases and decreases in long term assets, long term liabilities, and common stock are a result of cash transactions. 2. Land costing $46,500 was sold, resulting in a gain of $6,500. No other long-term assets were sold. 3. Additional long-term investments were purchased. 4. An additional long-term note payable was signed. No repayments on notes were made. 5. Additional common stock was issued.