upon payment. 5. Below is an Income Statement and a Statement of Cash Flows for Morrissey Corporation for Year 8. Assuming all sales are made on account and all inventory are purchased on account. (12 points) 6 Income Statement For the Year Ended December 31, Year 8 Sales Revenue $12,400 Gain on Sale of Equipment 60 Interest Revenue 16 Total Revenues $11,476 Income Statement For the Year Ended December 31, Year 8 Sales Revenue $12,400 Gain on Sale of Equipment 60 Interest Revenue 16 Total Revenues $11,476 Cost of Goods Sold Selling and Administrative Expense Interest Expense Income Tax Expense (7,070) (2,240) (210) (752) $ 2,204 Net Income Statement of Cash Flows For the Year Ended December 31, Year 8 Operations Net Income $2,204 Depreciation 370 Gain on Sale of Equipment (60) Increase in Accounts Receivable (160) Increase in Prepayments (70) TO Statement of Cash Flows For the Year Ended December 31, Year 8 Operations Net Income $2,204 370 (60) (160) (70) (25) Depreciation Gain on Sale of Equipment Increase in Accounts Receivable Increase in Prepayments Decrease in Income Tax Payable Decrease in Other Current Liabilities Decrease in Inventories Increase in Accounts Payable-Merchandise Cash Flow from Operations (150) 140 175 $2,424 $ 310 Investing Sale of Equipment Acquisition of Property, Plant and Equipment Acquisition of Marketable Securities (610) (1,300 Cash Flow from Investing $(1,600) Financing Decrease in Short-term Borrowing $(120) Increase in Long-term Debt 550 Increase in Common Stock 400 Decrease in Long-term Debt (200) Dividends (390) Cash Flow from Financing $ 240 $ 1,064 Change in Cash Cash-January 1, Year 8 850 $ 1,914 Cash-December 31, Year 8 Required: a. Compute the amount of cash collected from customers during Year 8. Change in Cash Cash-January 1, Year 8 $ 1,064 850 Cash-December 31, Year 8 $ 1,914 Required: a. Compute the amount of cash collected from customers during Year 8. b. Compute the amount of cash paid to suppliers for merchandise during Year 8. c. Property, plant and equipment (at cost) had a balance of $3,700 on January 1, Year 8 and $3,940 on December 31, Year 8. Accumulated depreciation had a balance of $1,290 on January 1, Year 8 and $1,540 on December 31, Year 8. Give the journal entry that Morrissey Corporation made in its accounting records during Year 8 to record the sale of the equipment F8:54 95 ] 5 d. The balance in the retained earnings account on December 31, Year 8 after closing entries was $1,154. Compute the balance in the retained earnings account on January 1, Year 8