(Appendix 11B) Using a Spreadsheet to Prepare a Statement of Cash Flows Jane Bahr, the controller of Endicott \& Ko, prepared the following statements of financial position at the end of 2018 and 2017:

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1. Using a spreadsheet. prepare a statement of cash flows for 2018. Assume that Endicott \& Ko uses the indirect method 2. CONCEPTUAL CONNECTION Discuss whether Endicott \& Ko appears to have matched the timing of inflows and outfows of cash.

Problem

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ASSETS Endicott & Kn Associates Statements of Financial Position December 31, 2018 and 2017 2018 2017 $ 17,000 219,000 104,000 340,000 40,000 Additional Information: 1. Computing equipment with a cost of $250,000 and accumulated depreciation of $230,000 was sold for $5,000. New computing equipment was purchased for $376,000. 2. New office fumiture was purchased at a cost of $35,000. 3. Depreciation expense for 2018 was $42,000. 4. Investments costing $20,000 were sold for cash at a lass of $2,000. Additional investments were pur chased for $31,000 cash. 5. A $25,000 principal payment on the long-term note was made during 2018. 6. A portion of the cash needed to purchase comput- ing equipmont was secured by issuing bonds pay- able for $140,000 cash. 7. Net income was $70,000 and dividends were $38,000. Current assets: Cash Accounts receivable $ 2,000 78,000 Prepaid rent 29,000 Total current assets 109,000 Long-term investments 51,000 Property, plant, and equipment: Equipment, computing $488,000 $362,000 Fumiture 400,000 365,000 888,000 727,000 Accumulated depreciation (366,000) (554,000) Net property, plant, and equipment 522,000 173,000 Total assets $682,000 $553,000