Assets 2018 2017
cash 110,800 48,400
Account Receivable 38,000 87,000
Inventory 112,500 102,850
Prepaid expenses 26,000 28,400
Long time investment 109,000 138,000
Plant Assets 397,000 242,500
Accumulated depreciation -50,000 -52,000
Total 743,300 595,950
Liabilities and stockholder's Equity
Accounts Payable 72,000 67,300
Accrued Expenses Payable 13,500 21,000
Dividends Payable 3,000 -
Bonds payable 170,000 146,000
common stocks 262,000 175,000
Retained Earnings 222,800 186,650
Total 743,300 595,950
Additional information
1. old plant assets having an original cost of $ 57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash.
2. A new plant asset was purchased directly in exchanged for common stock valued at $42,00.
3. New bond were issued at par for $60,000.
4. Net income was $154,480.
5. A $1,000 prior period adjustment was recorded in 2017 correcting an understatement of depreciation in 2015.The 2017 balance sheet is appropriate restarted.
Required
1. Prepare a 2018 statement of cash flows using the indirect method. submit supporting computations.