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Using the Balance Sheet and Income Statement data below, analyze the transactions for Tolito Treats, Inc. for $2013$ and $2014.$

Tolito Treats, Inc.

Balance Sheets as of December $31,2013$ and $2014$

$2013$

$2014$

Cash

$$$$34,000\mathrm{.}00$

$$$$34,500\mathrm{.}00$

Accounts Receivable, Net

$$$$12,000\mathrm{.}00$

$$$$17,000\mathrm{.}00$

Inventory

$$$$16,000\mathrm{.}00$

$$$$14,000\mathrm{.}00$

Investments $($Long Term$)$

$$$$6,000\mathrm{.}00$

$\_\_$

Fixed Assets

$$$$80,000\mathrm{.}00$

$$$$93,000\mathrm{.}00$

Accumulated Depreciation

$-48,000$

$-$$$39,000\mathrm{.}00$

Total Assets

$$$$100,000\mathrm{.}00$

$$$$119,500\mathrm{.}00$

Accounts Payable

$$$$19,000\mathrm{.}00$

$$$$12,000\mathrm{.}00$

Bonds Payable

$$$$10,000\mathrm{.}00$

$$$$30,000\mathrm{.}00$

Common Stock

$$$$50,000\mathrm{.}00$

$$$$61,000\mathrm{.}00$

Retained Earnings

$$$$21,000\mathrm{.}00$

$$$$28,000\mathrm{.}00$

Treasury Stock

$\_\_$

$-$$$11,500\mathrm{.}00$

Total Liabilities and Equity

$$$$100,000\mathrm{.}00$

$$$$119,500\mathrm{.}00$

Additional data for the period January $1,2014$ through December $31,2014$ are:

Sales on account, $$70,000.$

Purchases on account, $$40,000.$

Depreciation, $$5,000.$

Expenses paid in cash, $$18,000($including $$4,000$ of interest and $$6,000$ in taxes$).$

Decrease in inventory, $$2,000.$

Sales of fixed assets for $$6,000$ cash; cost $$21,000$ and two$-$thirds depreciated $($loss or gain is included in income$).$

Purchase of fixed assets for cash, $$4,000.$

Fixed assets are exchanged for bonds payable of $$30,000.$

Sale of investments for $$9,000$ cash.

Purchase of treasury stock for cash, $$11,500.$

Retire bonds payable by issuing common stock, $$10,000.$

Collections on accounts receivable, $$65,000.$

Sold unissued common stock for cash, $$1,000.$

In Excel, prepare a side$-$by$-$side comparative statement contrasting two bases of reporting: $(1)$ net income and $(2)$ cash flows from operations.

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