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    Balance Sheets and Income Statements

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    I need some assistance in trying to analyze and answer the balance sheet and income statements for the attachment.

    The following are balance sheets for Scott Company as of the end of the Years 1 and 2:

    Balance Sheet
    Year 2 Year 1
    Cash 189 50
    Accounts Receivable 950 750
    Inventory 500 300
    Prepaid Expenses 40 30
    Plant assets 3,200 3,000
    Accumulated depreciation (1,740) (1,800)
    Total Assets 3,139 2,330

    Accounts Payable 350 150
    Interest payable 18 24
    Taxes Payable 370 320
    Bonds payable 400 240
    Paid-In capital 1,200 900
    Retained earnings 801 696
    Total liabilities and equity 3,139 2,330

    The income statement for Year 2 was as follows:

    Sales 1,800
    Cost of goods sold (1,200)
    Gross margin 600
    Depreciation (240)
    General expenses (60)
    Operating income 300
    Interest expense (30)
    Income before taxes 270
    Tax expense (90)
    Net Income 180

    The following is also available for Year 2:

    a. Plant assets were sold for their book value of $700. The assets had originally cost $1,000.
    b. Cash dividends of $75 were paid during the year.
    c. All account payable relate to inventory purchases.
    d. All purchases of plant assets were cash transactions.

    Refer to Scott Company. Determine the amount of cash provided by Scott's operating activities.

    Refer to Scott Company. Determine the amount of cash provided (or used) by Scott's investing activities.

    Refer to Scott Company. Determine the amount of cash provided (or used) by Scott's financing activities.

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    https://brainmass.com/business/finance/balance-sheets-and-income-statements-107761

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