Reference no: EM132467667
The XYZ Corporation reported the following balance sheet data for 2018 and 2017:
|
|
2018
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2017
|
|
Cash
|
$60,375
|
$22,955
|
|
Available-for-sale debt securities
|
|
|
|
not cash equivalents)
|
15,500
|
85,000
|
|
Accounts receivable
|
91,000
|
68,250
|
|
Inventor/
|
165,000
|
145,000
|
|
Prepaid insurance
|
1,500
|
2,000
|
|
Land, buildings, and equipment
|
1,260,000
|
1,125,000
|
|
Accumulated depreciation
|
610,000)
|
:572,000)
|
|
Total assets
|
$983,375
$70,340
|
$876,205
$148.670
|
|
Accounts payable
|
|
Salaries payable
|
20,000
|
24,500
|
|
Notes payable (current)
|
25,000
|
75,000
|
|
Bonds payable
|
200,000
|
0
|
|
Common stock
|
300,000
|
300,000
|
|
Retained earnings
|
368,035
|
328,035
$876 205
|
|
Total liabilities and shareholders' equity
|
5983 375
|
|
|
|
Additional information for 2018:
(1 Sold available-for-sale debt securities costing 569,500 for 574,000.
(2 Equipment costing $20,000 with a book value of $5,000 was sold for $6,000.
(3 Issued 6% bonds payable at face value, $200,000.
(4 Purchased new equipment for $155,000 cash.
(5 Paid cash dividends of $20,000.
(6 Net income was $60,000.
Required:
Question 1: Prepare a statement of cash flows for 2018 in good form using the indirect method for cash flows from operating activities. USE Worksheet Provide in class.