Exhibit 3.13 presents the comparative balance sheet of The Secunda Company as of the beginning and end of Year 8.

Exhibit 3.14 presents the income statement for Year 8.

Sales Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..$100,000

Less Expenses:

Cost of Goods Sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000

Interest Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000

Other Operating Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,000

Total Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 82,000

Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 18,000

The company makes all sales on account and purchases all goods and services on account. The Other Operating Expenses account includes depreciation charges and expirations of prepayments. The company debits Dividends Declared during the year to Retained Earnings. Prepare a schedule showing all cash transactions for Year 8.

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December 31 Year 8 Year 7 ASSETS $ 20,000 $ 9,000 Cash..... Accounts Receivable 51,000 36,000 Merchandise Inventory. 60,000 45,000 Prepayments 1,000 $121,000 $ 40,000 2,000 $103,000 $ 40,000 (16,000) $ 24,000 $127,000 Total Current Assets.. Land, Buildings, and Equipment (at cost) . Less Accumulated Depreciation..... (18,000) $ 22,000 $143,000 Land, Buildings, and Equipment (net) Total Assets... LIABILITIES AND SHAREHOLDERS' EQUITY Interest Payable.. Accounts Payable $ 1,000 $ 2,000 40,000 $ 42,000 30,000 $ 31,000 Total Current Liabilities. Mortgage Payable ... 20,000 $ 51,000 $ 50,000 17,000 $ 59,000 $ 50,000 Total Liabilities . Common Stock ... Retained Earnings.. 34,000 $ 84,000 $143,000 26,000 $ 76,000 $127,000 Total Shareholders' Equity . . Total Liabilities and Shareholders' Equity.