Check my work 5 Soft Touch Company was started several years ago by two golf instructors. The company's comparative balance sheets and income statement are presented below, along with additional Information 10 points Current Year Previous Year Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment 13,680 2,600 13,280 (3,140) $26,340 $ 8,580 3,700 12,880 eBook Pint References 2,700) Total Assets $21,5e0 Accounts Payable salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings 1,200 1,080 3,200 12,000 8,860 2,200 1,600 1,000 12,000 4,700 $21,500 Total Liabilities and stockholders' Equity $26,340 Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Loss on Disposal of Equipment Income Tax Expense Net Income $75,800 69,000 960 480 1,200 $ 4,160 Additional Data: a. Bought new golf clubs for $3,200 cash and sold existing clubs for $1,000 cash. The clubs that were sold had cost $2,000 and had Accumulated Depreciation of $520 at the time of sale. b. Borrowed $2,200 cash from the bank during the year c Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax, assume that Income Tax Expense was fully paid in cash. SOFT TOUCH COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Book rint rences Cash Flows from Investing Activities: Cash Flows from Financing Activities: Homework Saved Cash Flows from Investing Activities: Cash Flows from Financing Activities