4 Sales SCOGS 6 Gross Profit 7 Selling and Administrative Expenses B Income from operations 9Other gains and revenues 10 Gain on sale of equipment 11 Income before taxes 12 Income tax expense 13 Net Income 14 15 16 17 18 Applet Inc. Income Statement Year ended year 2 19 20 Current Assets 21 Cash and cash equivalents 22 Accounts Receivable Assets 29 30 Current Liabilities 23 Inventory 24 Total current assets 25 Plant, property, & equipment 26 Less accumulated depreciation 27 Net plant, property, & equipment 28 Total Assets Liabilities 31 Accounts payable 12 Accrued liabilities i Applet Inc Balance Sheet Years 2 & 1 $3,638,000 2,469,000 1,169,000 941,000 228,000 3,000 231,000 91,000 $ 140,000 Year 2 Year 1 91,000 5 29,000 637,000 654,000 586,000 537,000 1,314,000 1,220,000 1,517,000 1,394,000 654,000 561,000 863,000 833,000 $2,177,000 $2,053,000 $ 264,000 $ 220,000 193,000 190,000 Prepare a statement of cash flows in proper format using the indirect method for Applet Inc.'s second year of operation. Show Taccount to support your calculations. The following information is provided as a supplement to the financial statements. 1. The company sold equipment for $8,000. The original cost was $15,000 and the depreciation was $10,000 2. There were no new bonds issued during the year. 3. The company did not repurchase and of its own stock during the year.

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