Reference no: EM131820605

Assignment

Boca Inc.
Balance Sheets
December 31
Assets	2018	2017
Cash	110,800	48,400
Accounts Receivable	38,000	87,800
Inventory	112,500	102,850
Prepaid Expenses	26,000	28,400
Long-term Investments	109,000	138,000
Plant Assets	397,000	242,500
Accumulated depreciation	-50,000	-52,000
Total	743,300	595,950
Liabilities and Stockholders' 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 Stock	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 exchange for common stock valued at $42,000.

3. New bonds 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 appropriately restated.

Required:

1. Prepare a 2018 statement of cash flows using the indirect method. Use the textbook format (pages 1,420, 1,423, 1,427). Do not submit supporting computations.

SUBMISSION INFORMATION:

• Submit the assignment in Excel using one page. Include your Name, Date, ACC Course, and Homework #2 in the upper left corner.

• Submit your assignment through the upload feature within Moodle. Assignments should not be emailed to the instructor.