Reference no: EM132995282
Question - Comparative statements of financial position for Anderson Inc. appear below: ANDERSON INC. Comparative Statements of Financial Position Assets Dec. 31, 2018 Dec. 31, 2017
Cash $29,000 $10,000
Accounts receivable 28,000 19,000
Prepaid expenses 9,000 12,000
Inventory 37,000 54,000
Long-term investments 0 53,000
Equipment 110,000 48,000
Accumulated depreciation-equipment (26,000) (22,000)
Total assets $187,000 $174,000
Liabilities and Shareholders' Equity
Accounts payable $21,000 $9,000
Mortgage payable 37,000 45,000
Common shares 40,000 23,000
Retained earnings 89,000 97,000
Total liabilities and shareholders' equity $187,000 $174,000
Additional information regarding fiscal 2018:
1. Net income for the year was $27,000. This amount includes the loss on sale of long term investments of $ 5,000.
2. Cash dividends of $35,000 were declared and paid during the year.
3. Long-term investments with a carrying amount of $53,000 were sold for $48,000 cash.
Required - Using the indirect method, prepare a statement of cash flows for the year ended December 31, 2018.