Reference no: EM131818331

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.