Reference no: EM132781030

Question - The following financial information is obtained regarding Stallion Company:

12/31/19 12/31/18

Current Assets:

Cash 190,000 46,000

Accounts Receivable (net) 140,000 90.000

Merchandise Inventory 120,000 150,000

Prepaid Expenses 7,000 2,000

Supplies 3,000 4,000

Non-Current Assets:

Land 100,000 -0-

Plant Assets 200,000 200,000

Accumulated Depreciation (60,000) (40,000)

Total Assets 700,000 452,000

Current Liabilities:

Accounts Payable 25,000 33,000

Accrued Liabilities 15,000 9,000

Non-current Liabilities:

Notes Payable 100,000 20,000

Total Liabilities: 140,000 62,000

Common Stock ($1 Par Value) 200,000 140,000

Common Stock-APIC 50,000 10,000

Retained Earnings 310,000 240,000

Total Stockholders' Equity 560,000 390,000

Additional Data:

A) 2019 Net Income was $170,000

B) Land was acquired by taking out a Notes Payable for $90,000 and paying Cash for the balance.

C) All Common Stock was issued for Cash.

Required - Prepare the Statement of Cash Flow for Stallion Company under the Indirect Method.