Using the information below, prepare a statement of cash flows for ZXH, Incorporated. ZXH, Incorporated Income Statement December 31, 2014 Income: Sales $700,000 Cost of goods sold $340,000 NET MARGIN $360,000 Expenses: Insurance Expense $1,200 Supplies Expense $10,000 Wage Expense $105,000 Rent Expense $60,000 Depreciation Expense $6,000 Loss on Sale of Equipment $3,500 Taxes $37,500 TOTAL EXPENSE $223,200 Net Income $136,800

ZXH, Incorporated (first number 2014 second 2013) Balance Sheets

December 31, 2014 and 2013 2014 2013 ASSETS Cash $119,175 $155,750 Supplies $1,700 $1,500 Accounts receivable $12,500 $19,100 Inventory $105,700 $71,250 Total current assets $261,875 $247,600 Land $352,000 $300,000 Equipment, net of depreciation $16,500 $28,000 Total assets $607,575 $575,600 LIABILITIES Accounts Payable $25,000 $28,200 Wages Payable $1,750 $0 Total current liabilities $26,750 $28,200 Longterm notes payable $75,000 $75,000 Total liabilities $101,750 $103,200 EQUITY Common Stock $238,050 $222,400 Retained earnings $267,775 $250,000 Total liabilities and equity $607,575 $575,600

Additional Information: In 2014 Common Stock was issued for $15,650 in cash In 2014 paid cash dividend of $0.50 per share, total dividend $119,025 In 2014 purchased small parcel of land for a parking lot with $52,000 cash Equipment was sold for $2,000 cash During 2014 no payments of principal or interest were made on the long term note