Exercise 2 (20 points) (Please answer in booklet and show work for partial credit!) Plough Company reported net income of $180,000 for the current year. During the year depreciation was $60,000, and amortization was $20,000. Also, during the year, a loss on the sale of investments was $22,000 and a gain on sale of land was $50,000 Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Beginning of Year Cash Accounts receivable Inventories Prepaid expenses Accounts payable Income taxes payable End of Year $20,000 24,000 50,000 9,500 12,000 1,600 $15,000 32,000 65,000 5,000 18,000 1,200 Instructions Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method. r Exercise 4 (8 points) (Please answer in booklet and show work for partial credit) Maverick Company issued common stock for cash proceeds of $20,000 during 2017 The company paid dividends of $5,000. The company also issued a long-term note payable for $35,000 in exchange for equipment during the year. The company sold treasury stock that had a cost of $3,000 for cash proceeds of $9,000. Instructions Compute net cash flows from financing activities. Exercise 5 (12 points) Vertical Analysis Please answer in booklet and show work for partial credit!) Express the following income statement information for Complex Corporation, in common-size percents using Sales as a base amount (100%). (round to the nearest whole percent). Prepare a common-size income statement for the year 2017 AND 2016. 20172016 $420,000 280,000 100,000 40,000 $460,000 Net sales Cost of goods sold Operating expenses Net income 310,000 112,000 38,000