Reference no: EM132753478

Journal Entry

The following information is related to Cardi Company's fiscal year 2019.

Income Statement:

Net Income $200,000

Depreciation Expense 20,000

Loss on Sale of Plant Assets 20,000

Interest Expense 500

Balance Sheet - 12/31/19:

Accounts Payable Increase 3,000

Accounts Receivable Increase 5,000

Plant Assets - Purchased 200,000

Plant Assets - Proceeds

from sale 100,000

Additional Information:

Cash Balance - 12/31/2018: $50,000

Common Stock exchanged for outstanding Long-Term Notes Payable of $150,000

Dividends paid were $20,000

Problem 1: Use this information to prepare the Statement of Cash Flows for Cardi Company using the indirect method.