AC 313 Statement of Cash Flows Assessment (50 Points) Presented below are the balance sheets of Ace Corporation as of December 31 , Year 1 and Year 2, and the income statement for the year ended December 31, Year 2_ The statement of retained earnings for the year ended December 31, Year 2 is on the next page. All dollars are in thousands. Ace Corporation Balance Sheets December 3 1, Year I and Year 2 $1 036 Assets Cash Accounts receivable Less: Allowance for doubtful accounts Prepaid insurance Inventory Long-term investment Land Buildings and equipment Less: Accumulated depreciation Trademark Total Assets Liabilities & Stockholders' Equity Accounts payable Salaries payable Deferred tax liability Lease liability Bonds Payable Less: Discount Common Stock Paid-In Capital in excess of par Preferred Stock Retained Earnings Total Liabilities & Stockholders' Year 1 s 85 245 (9) 15 225 65 160 250 (75) 25 $ 986 9 15 275 (26) 250 75 338 s 986 Year 2 s 127 253 (11) 9 234 42 160 300 (100) 22 $1 036 s 36 6 18 75 125 (24) 280 105 70 345 Equity