Preparing a Statement of Cash Flows}

Hellas Company reported the following comparative statements of financial position:

\section*{Additional information:}
1. Net income for 2018 was \(\$ 20,500\).
2. Cash dividends of \(\$ 7,900\) were declared and paid during 2018 .
3. Long-term investments with a cost of \(\$ 28,600\) were sold for cash at a gain of \(\$ 4,100\). Additional long-term investments were purchased for \(\$ 14,400\) cash.
4. Equipment with a cost of \(\$ 14,800\) and accumulated depreciation of \(\$ 13,500\) was sold for \(\$ 3,800\) cash. New equipment was purchased for \(\$ 27,350\) cash.
5. Depreciation expense was \(\$ 18,900\).
6. A principal payment of \(\$ 25,000\) was made on long-term notes.
7. Common shares were sold for \(\$ 31,500\) cash.

\section*{Required:}
Prepare a statement of cash flows for Hellas, using the indirect method to compute net cash flow from operating activities.

Problem

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Assets: 2018 2017 Cash $ 33,200 $ 12,750 Accounts receivable 53,000 44.800 Inventory 29,500 27,500 Prepaid rent 2,200 6,200 Investments (long-term) 17,600 31,800 Property, plant, and equipment 162,000 149.450 Accumulated depreciation (61,600) (56,200) Total assets $235,900 $216,300 Liabilities and Equity: Accounts payable $ 16,900 $ 19,500 Interest payable 3,500 4,800 Wages payable 9,600 7,100 Income tax payable Notes payable 5,500 3,600 28,000 53.000 Common shares 100,000 68,500 Retained earnings 72,400 59.800 Total liabilities and equity $235,900 $216,300