Statement of Cash Flow

Balance Sheet
Fiscal 2004
PRIOR YEAR CURRENT YEAR

Current Assets
CASH $519,200 $480,000
MARKETABLE SECURITIES $185,000 $200,000
ACCOUNTS RECEIVABLES $138,000 $406,000
INVENTORIES $1,135,000 $1,285,000
PREPAID INSURANCE $29,400 $23,510
OTHER CURRENT ASSETS $95,400 $229,300
$2,102,000 $2,623,810 $560,900

INVESTMENTS $165,000 $-

Plant Assets and Goodwill
LAND $500,000 $500,000
BUILDING $1,490,000 $1,850,000
MACHINERY & EQUIPMENT $1,378,000 $978,000
LEASEHOLD IMPROVEMENTS $302,000 $302,000
GOODWILL $440,000 $400,000
Less ACCUM. DEPRECIATION $(987,000) $(445,000)
$3,123,000 $3,585,000

Total Assets $5,390,000 $6,208,810

Current Liabilities
allowance for doubtful acct. $21,000 $22,000
ACCOUNTS PAYABLE $115,000 $386,000
SALARIES PAYABLE $92,000 $76,960
INCOME TAX PAYABLE $265,000 $223,650
DEFERRED TAXES $245,000 $165,000
OTHER CURRENT LIABILITIES $485,000 $349,500
$1,223,000 $1,223,110

BONDS PAYABLE, DUE 2028 $- $429,000
PREFERRED STOCK, $100 PAR $800,000 $800,000

Stockholder's Equity
COMMON STOCK $477,000 $607,500
RETAINED EARNINGS $2,890,000 $3,149,200 =2890000+ 639200-380000

Total Liabilities and Owner's equity $5,390,000 $6,208,810

Note (Retained income for current year = Previous year's retained income + Net Income for the year - Dividends paid)

PRIOR FACTS

A)        THE COMPANY SOLD 65,250 SHARES OF STOCK FOR $130,500
B)        THE COMPANY PAID PREFERRED DIVIDENDS OF $64,000
C)        THE COMPANY PAID COMMON DIVIDENDS OF $316,000
D)        THE COMPANY'S NET INCOME WAS $639,200

NEW DATA:

  E)    DURING THE YEAR THE COMPANY SOLD A BUILDING COSTING $580,000 WITH ACCUM. DEPRECIATION OF $580,000 FOR $200,000.
 

F)       DURING THE YEAR THE COMPANY SOLD EQUIPMENT FOR $100,000. IT COST $400,000 AND HAD ACCUM. DEPRECIATION OF $330,000.  THE

G)      THE COMPANY SOLD INVESTMENTS FOR $180,000.  THEY COST $165,000.

H)      THE COMPANY PURCHASED A BUILDING FOR $940,000 AND ISSUED BONDS FOR $429,000.

I)    THE ABOVE INFORMATION DOES NOT REQUIRE YOU TO CHANGE ANYTHING ON THE INCOME STATEMENT.  IEMS  "E" THRU "H" ARE PRESENTED ONLY TO HELP YOU PREPARE THE CASH FLOW STATEMENT.

see attatched files