Prepare a statement of cash flows for Abrahams Manufacturing Company for the year ended January 31, 2018. Interpret your results. Abrahams Manufacturing Company Balance Sheet for Jan. 31, 2017 and Jan. 31, 2018

Abrahams Manufacturing Company Income Statement for the Year Ended Dec. 31, 2018

Additional Information

1. The only entry in the accumulated depreciation account is for 2018 depreciation.

2. The firm paid $22,000 in common stock dividends during 2018.

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2017 2018 Cash $89,000 $100,000 Accounts receivable 64,000 70,000 Inventory 112,000 100,000 Prepaid expenses 10,000 10,000 Total current assets 275,000 280,000 Gross plant and equipment 238,000 311,000 Accumulated depreciation (40,000) (66,000) Total assets $473.000 $525.000 Accounts payable $85,000 $90,000 Accrued liabilities 68,000 63,000 Total current debt Mortgage payable 153,000 153,000 70,000 Preferred stock 120,000 Common stock 205,000 205,000 Retained earnings 45,000 47,000 Total debt and equity $473.000 $525.000