TimeInc. Income StatementFortheYearEndedDecember31 2014Sales 450000CostofGoodsSo

TimeInc. Income StatementFortheYearEndedDecember31 2014Sales 450000CostofGoodsSold 300000GrossMargin 150000Less:Operating Expenses 60000DepreciationExpense 17000IncomeTaxes 20000InterestExpenseLoss onsaleofplantassetsNetIncome180003000 118000320001. Thecomparativebalancesheets forTime Companyappearbelow:TimeInc.Comparative BalanceSheets December 31Assets 2014 2013Cash 41000 35000AccountsReceivable 75000 53000Inventories 120000 132000PrepaidExpenses 19000 25000Investments 100000 75000Plant assets 325000 250000AccumulatedDepreciationTotalAssets(65000) (60000)615000 510000Liabilities&EquityAccountsPayable 93000 75000AccruedExpenses 29000 24000BondsPayable 120000 160000CommonStock 275000 170000RetainedEarningsTotalLiabilities &Equity98000 81000615000 510000Additional information1. Newplantassetscosting$100000 werepurchasedwithcash.2. Investmentswerepurchasedwithcash.3. Oldplantassetscosting$25000 andwithabookvalueof$13000 weresoldfor$10000 cash.4. Bonds withafacevalueof$40000 wereconvertedinto$40000 parvalueofcommonstock.5. Commonstockwasissuedforcash.6. Acashdividendof$15000 wasdeclaredandpaidduringtheyear.RequiredPrepareastatementofcash owsfortheyearusingtheindirectmethod.