Sherman Company reported the following financial statements for 2013 and 2014:

Compute the following investing cash flows:
a. Purchases of plant assets (all were for cash). There were no sales of plant assets.
b. Proceeds from the sale of investments. There were no purchases ofinvestments.

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1 Sherman Company Income Statement For the Year Ended December 31, 2014 4 5 Sales revenues 6 Less: Cost of goods sold 7 Gross profit 8 Less operating expenses: 9 Salaries and wages expense 10 Insurance expense 11 Depreciation expense 12Other operating expenses 13 14 Operating income 15 Plus other income and less other expenses: 16 Interest expense 17 Other income and expenses 18 19 Income before income taxes 20 Less: Income tax expense 21 Net income 4750,000 2,880,000 1,870,000 320,000 12,000 77,000 120,000 Total operating expenses 529,000 1,341,000 6,100 0 Total other income and expenses 6.100 S 1,334 900 403,000 Sherman Company Comparative Balance Sheets December 31, 2014 and 2013 2 Assets 2014 2013 5 Current assets: 6 Cash 7 Accounts receivable 8 Inventory 9 Prepaid insurance 10 Total current assets 589,000 S 3,000 960,000 4,800 464,000 17,000 200,000 4,800 685,800 S 1,626,800 12 Property, plant, and equipment 13 Less: Accumulated depreciation 14 Investments 15 Total assets 16 17 18 Current liabilities: 19 Accounts payable 20 Wages payable 21 I interest payable 22 Income taxes payable 23 Other accrued expenses pay able 24 Total current liabilities 25 26 Long-term liabilities 27 Total liabilities 28 29 30 Common stock 31 Retained earnings 32 Total stockholders' equity S 1,230,000 1,180,000 (209,000) 62,000 S2612800 S1718800 286,000) 42,000 Liabilities 21,000 S 17,000 44,000 2,700 275,080 21,000 19,000 5,300 38,000 336,780 120,300 65,000 401,780 80,000 Stockholders' equity ls IS 721,000..$ 2.211,020 IS 2,612800 S1718800 778000 740,500 1,518,500! 34 Total liabilities and equity 35