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Unformatted text preview: note payable. No buildings were purchased or sold. Equipment was purchased. In January of 20X3, equipment with an original cost of $75,000 was sold for $50,000. The increase in paid-in capital all resulted from issuing additional shares for cash. 1 of 2 I-16.02 The income statement for the year ending 20X3 follows: TRAVIS ENGINEERING Income Statement For the Year Ending December 31, 20X3 Sales 2,856,000 $ Cost of goods sold 1,576,300 Gross profit 1,279,700 $ Operating expenses and other Salaries 433,500 $ Utilities 64,200 Interest 60,000 Depreciation 76,800 Loss on sale of equipment 15,000 649,500 Income before income tax 630,200 Income tax 240,000 Net income 390,200 $ Prepare Travis Engineering's statement of cash flows for the year ending 20X3. Use the direct approach, and prepare the supplement reconciliation of net income to operating cash flows. 2 of 2...
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