2018 2017 Change Sales (all on credit) Cost of goods sold Gross margin 2018 2017 Current assets: $770,000 $732,000 Cash (387,000) (317,000) Accounts receivable (net) 383,000 415,000 Inventory Prepaid expenses 37,000 51,000 Other current assets 165.000 137.000 Total current assets $115,150 38,000 46,000 2,100 2.950 204,200 $66,900 $48,250 32,000 6,000 44,000 2.000 4,600 -2,500 4.500 -1,550 152,000 52,200 Depreciation expense Other operating expenses Total operating expenses Operating income 202,000 188,000 181.000 227.000 Long-term Investments 81,000 56,000 25,000 307,000 257,000 50,000 (51,000) 26,800 (77,800) Other income (expenses) Interest expense Gain on sale of investments Loss on sale of plant assets Total other income (expenses) Plant assets Less: accumulated (4,800) (3,600) depreciation 7,400 5,200 Total plant assets (4,600) (5.500) Total assets 229.200 206.000 23,200 414.000 100,400 514,400 (16,800) (3,900) Income before income taxes Income taxes expense Net income 179,000 223,100 (53,700) (66.930) $125,300 $156,170 Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities $27,400 2,400 4,300 34,100 $28,000 2,000 16.000 46,000 $-600 400 -11.700 -11,900 180,000 62.000 226,000 50,100 0. Herrera Inc. Long term liabilities: Statement of Retained Earnings Notes Payable 242,000 For the year ended December 31, 2018 Total liabilities 276,100 2018 2017 Ret. earnings, Jan. 1 $38,000 $0 Stockholders' equity Add: net income 125,300 156,170 Common stock, $5 par value 120,000 Deduct: Dividends (75.000) (118,170). Additional paid-in capital 30,000 Increase in retained 50,300 38,000 Retained earnings 88,300 earnings Ret. earnings, Dec. 31 $88,300 $38.000 Total stockholders' equity 238,300 Total liabilities and $514.400 stockholders' equity 120,000 0 30,000 0 38.000 50,300 188,000 50,300 $414,000 $100,400 Other information: Shares of common stock outstanding Earnings per share Dividends per share Market price per share, common stock 24,000 24,000 $5.22 $6.51 $3.13 $4.92 $17 $13 Cash Flows Horiz Analysis Horiz Analysis Vertic Analysis Vertic Analysis from Oper Inc St Bal St Inc St Bal Sheet Ratios Requirement Prepare the cash flows from operations section of O. Herrera Inc.'s 2018 statement of cash flows using the indirect method. Enter items to be subtracted as negative values. 0. Herrera Inc. Cash Flows from Operating ActivitiesIndirect Method For Year Ended December 31, 2018 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operations: Cash Flows from Oper Horiz Analysis Inc St>