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addition, the company disposed of used equipment that had original cost of $1,300 and ac acquired new equipment for $1.200 in cash lo 3,4 E4-42.

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addition, the company disposed of used equipment that had original cost of $1,300 and ac acquired new equipment for $1.200 in cash lo 3,4 E4-42. Preparing a Statement of Cash Flows (Indirect Method) The following financial statements were issued by Hoskins Corporation for the fiscal year ended December 31, 2018. All amounts are in millions of U.S. dollars. Balance Sheets December 31, 2017 December 31, 2018 $ 550 1,500 500 150 $ 300 600 400 400 1,700 Assets Cash Accounts receivable. Inventory Prepaid expenses. Current assets. Property, plant, and equipment at cost.. Less accumulated depreciation Property, plant, and equipment, net Total assets... 2,700 6.200 (2.100) 6.100 (1.750) 4,100 $5,800 4,350 $7,050 $ 400 200 1,200 1,800 1,000 Liabilities and Shareholders' Equity Accounts payable Income tax payable Short-term debt. Current liabilities Long-term debt. Total liabilities Contributed capital Retained earnings Total shareholders' equity. Total liabilities and shareholders' equity 2,800 800 2,200 3,000 $5,800 $ 800 100 2,700 3,600 0 3,600 800 2,650 3,450 $7,050 Income Statement Fiscal year 2018 $6,500 3,400 3,100 Sales revenues. Cost of goods sold Gross profit... Selling, general and administrative expenses Depreciation expense Operating income Interest expense. Income before income tax expense Income tax expense Net income 1,450 350 1,300 350 950 250 $ 700 Additional information: 1. During fiscal year 2018, Hoskins Corporation mulated depreciation of $700, receiving $600 in cash from the buyer. Chapter 4 Reporting and Analyzing Cash Flows 2. During fiscal year 2018, Hoskins Corporation arranged short-term bank financing and bor- rowed $1,500, using a portion of the cash to repay all of its outstanding long-term debt. 3. During fiscal year 2018, Hoskins Corporation engaged in no transactions involving its com- mon stock, though it did declare and pay in cash a common stock dividend of $250. REQUIRED Prepare a statement of cash flows (all three sections) for Hoskins Corporation's fiscal year 2018, using the indirect method for the cash from operations

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