Question

Prepare the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)

The balance sheet for Plasma Screens Corporation, along with additional information, are provided below:

Additional Information for 2018:

1. Net income is $65,000.

2. The company purchases $106,000 in equipment.

3. Depreciation expense is $158,000.

4. The company repays $112,500 in notes payable.

5 .The company declares and pays a cash dividend of $23,000.

The balance sheet for Plasma Screens Corporation, along with additional information, are provided below PLASMA SCREENS CORPORATION Balance Sheets December 31, 2018 and 2017 2018 2017 Assets Current assets Cash Accounts receivable $ 144,850 $ 156,500 90,000 76,400 1,600 76,400 91,000 3,200 Prepaid rent Long-term assets Land Equipment Accumulated depreciation 460,000 650,000 (418,000) (260,000) 460,000 756,000 Total assets $1,113,450 $ 1,174,500 Liabilities and Stockholders' Equity: Current liabilities Accounts payable Interest payable Income tax payable $ 95,000 $ 81,400 13,500 4,600 6,750 7,200 Long-term liabilities Notes payable 112,500 225,000 Stockholders' equity: Common stock Retained earnings 680,000 212,000 680,000 170,000 Total liabilities and stockholders' equity $1,113,450 $ 1,174,500 Additional Information for 2018: 1. Net income is $65,000 2. The company purchases $106,000 in equipment. 3. Depreciation expense is $158,000 4. The company repays $112,500 in notes payable 5 .The company declares and pays a cash dividend of $23,000

Prepare the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)

Thanks in advance!

Answer 1

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