Reference no: EM132467676

The following information is taken from French Corporation's financial statements:

                                                                              December 31

                                                                    2019                     2018

Cash                                               $90,000              $ 27,000

Accounts receivable                           92,000                80,000

Allowance for doubtful accounts           (4,500)               (3,100)

Inventory                                         155,000            175,000

Prepaid expenses                               7,500                 6,800

Land                                              90,000               60,000

Buildings                                         287,000            244,000

Accumulated depreciation                  (32,000)          (13,000)

Patents                                          20,000              35,000

Total Assets                                 $705,000                  $611,700

Accounts payable                            $ 90,000                 $ 84,000

Accrued liabilities                              54,000                     63,000

Bonds payable                                 125,000                    60,000

Common stock                                 100,000                   100,000

Retained earnings                              351,000                  312,700

Treasury stock, at cost                      (15,000)                 (8,000)

Total Liabilities and SE                       $705,000                $611,700

For 2019 Year

Net income $58,300

Depreciation expense 19,000

Amortization of patents 5,000

• French Corporation purchased some land and buildings in 2019. In addition, the company sold some of its patents. The gain or loss on the sale of patents is zero.

Required :

Question 1: Statement of cash flows for French Corporation for the year 2019. (Use the indirect method.)