5 1. The income statement and comparative balance sheets for O'Neill & Carter Company are as follows: 6 7 O'Neill & Carter Co., Inc. 8 Income Statement 9 Year Ended Dec 31, 2018 10 11 Sales $602,000 12 13 Expenses: 14 15 Cost of Goods Sold $322,000 16 Depreciation Exp. 15,000 17 Amortization Exp. 13,000 18 Salaries Expense 78,400 19 Rent Expense 21,000 20 Interest Expense 5,200 21 Income Tax Expense 56,000 22 Total Expenses 510,600 23 Net Income 91,400 O'Neill & Carter Co., Inc. Balance Sheet Dec 31, 2018 and Dec 31, 2017 2018 2017 25 26 27 28 29 30 31 32 Assets 33 Cash 34 Accts Rec 35 Inventory 36 Prepaid Rent 37 Land 38 Other Fixed Assets 39 Accum Depr 40 Patent 41 42 Total Assets 43 $19,900 36,300 148,200 2,000 32,000 130,000 (46,000) 41,000 $16,000 27,900 123,900 1,800 22,000 118,000 (39,000) 54,000 363,400 324,600 F G B D E 44 Liabilities 45 Accounts Payable 27,700 21,100 46 Salaries Payable 6,200 5,700 47 Interest Payable 1,600 400 48 Taxes Payable 6,800 7,600 49 Bonds Payable 46,000 36,000 50 Total Liabilities 88,300 70,800 51 52 Stockholders Equity 53 Common Stock 35,000 32,000 54 Paid-in-Capital in Excess of Par 140,000 100,000 55 Retained Earnings 100,100 121,800 56 Total Stockholders Equity 275,100 253,800 57 Total Liabilities & Stockholders Equity 363.400 324,600 58 59 No Land was sold in 2018 Cash was received through an issuance of Bonds Payable, 10,000. 60 This cash was used later in 2018 to purchase Land. 61 A Fixed Asset was sold for $4,100. 62 Fixed Assets worth $12,200 were damaged in an accident in 2018. Insurance claims have been 54 Paid-in-Capital in Excess of Par 140,000 100,000 55 Retained Earnings 100,100 121,800 56 Total Stockholders Equity 275,100 253,800 57 Total Liabilities & Stockholders Equity 363,400 324,600 58 59 No Land was sold in 2018 Cash was received through an issuance of Bonds Payable, 10,000. 60 This cash was used later in 2018 to purchase Land. 61 A Fixed Asset was sold for $4,100. 62 Fixed Assets worth $12,200 were damaged in an accident in 2018. Insurance claims have been 63 filed, but not paid as of 12/31/18 64 Total Cash Purchases of Fixed Assets $28,300 65 Cash Dividends Paid were $108,900 in 2018. 66 Required: 67 Prepare a Statement of Cash Flows for December 31, 2015 using the Indirect Method 68 (Reconcile Net Income to Net Operting Cash Only For Indirect Method)) 59