Selected Data and Additional Information from the Company's Records Are

question 115

Essay

Selected data and additional information from the company's records are presented below:
$\begin{array}{lrr} \underline{\text { Balance Sheet Data }} & \underline{\text { Year 2 }} & \underline{\text { Year 1 }} \\\text { Cash } & \$ 235,000 & 246,000 \\\text { Accounts receivable } & \$ 120,000 & \$ 150,000 \\\text { Inventories } & 56,000 & 50,000 \\\text { Accounts payable } & 38,000 & 70,000 \\\text { Salaries payable } & 10,000 & 5,000 \\\text { Equipment } & 110,000 & 70,000 \\\text { Accumulated depreciation } & 28,000 & 32,000 \\\text { Bonds payable } & 100,000 & 200,000 \\\text { Common shares } & 300,000 & 200,000 \\\text { Retained earnings } & 76,000 & 40,000\end{array}$

$\begin{array}{lr} \underline{\text { Income Statement Data }} & \underline{ \text { Year 2 }} \\ \text { Net sales } & \$ 920,000 \\\text { Cost of goods sold } & 700,000 \\\text { Operating expenses (excluding depreciation expense) } & 160,000 \\\text { Net income (including depreciation expense and gain) } & 56,000 \\\text { Gain on sale of equipment } & 4,000\end{array}$
Additional information:
1. Equpment with a cost of $30,000 and abogk value of \$18,000 was sald for $22,000 during Year 2.

2. Common shares were issued to retire bonds payable during Year 2.

3. The only items affecting retained earnings in Year 2 were net income and dividends declared and paid.
-Refer to Mary Kay Cosmetics.Prepare the company's statement of cash flows for the year ended December 31,Year 2.Use the direct method of determining net cash flows from operating activities.

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Definitions:

Psychotherapies

Various therapeutic techniques used to treat mental health problems and emotional challenges by talking with a psychologist or another mental health provider.

Time-limited

A therapeutic approach or intervention designed to be provided within a predetermined, short timeframe, often targeting specific problems or goals.

Psychological Disorders

A wide range of mental health conditions that affect mood, thinking, and behavior, often diagnosed based on standardized criteria.

Interpersonal Context

The social and relational environment in which interactions between individuals take place.