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26-2 The following comparative balance sheets and other data are for Cellular Telephone Sales, Inc.: CELLULAR TELEPHONE SALES, INC. Comparative Balance Sheets December 31, 2019

26-2

The following comparative balance sheets and other data are for Cellular Telephone Sales, Inc.:

CELLULAR TELEPHONE SALES, INC.

Comparative Balance Sheets

December 31, 2019 and 2018

2019 2018

Assets

Cash $152,210 $102,000

Accounts receivable, net 52,150 48,500

Merchandise inventory 60,000 70,000

Supplies on hand 3,500 5,100

Prepaid expenses 2,800 2,400

Land 360,000 285,000

Equipment 540,000 600,000

Accumulated depreciationequipment (150,000) (135,000)

Total assets $1,020,660 $978,000

Liabilities and Stockholders' Equity

Accounts payable $90,660 $152,600

Salaries payable 8,000 4,000

Accrued liabilities payable 4,000 16,500

Long-term note payable 300,000 300,000

Common stock ($5 par) 370,000 330,000

Paid-in capital in excess of par 65,000 -0-

Retained earnings 183,000 174,900

Total liabilities and stockholders' equity $1,020,660 $978,000

1. Land was bought for $75,000 cash. The company intends to build a building on the land. Currently, the company leases a building for its operations.

2. Equipment costing $100,000 with accumulated depreciation of $60,000 was sold for $47,000 (a gain of $7,000), and equipment costing $40,000 was purchased for cash.

3. Depreciation expense for the year was $75,000.

4. Common stock was issued for $105,000 cash.

5. Dividends declared and paid in 2019 totaled $65,900.

6. Net income was $74,000.

7. The company paid interest of $6,000 and income taxes of $34,000.

I need help making a statement of cash flows under the indirect method. Also any necessary supplemental schedule(s).

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