Additional information from the accounting records: a. Land that originally cost $10,000 was sold for $7,000. b. The common stock of Microsoft Corporation was purchased for $25,000 as a short-term investment not classified as a cash equivalent. c. New equipment was purchased for $150,000 cash. d. A $30,000 note was paid at maturity on January 1. e. On January 1, 2018, bonds were sold at their $60,000 face value. f. Common stock ($50,000 par) was sold for $76,000. g. Net income was $80,000 and cash dividends of $35,000 were paid to shareholders.

Required:

Prepare cash flow statement by using worksheet/spread sheet. Please make the statement by using direct and indirect method. (Please give explanation to the answer)

The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Wright Company. Additional information from Wright's accounting records is provided also. 2017 73 40 WRIGHT COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in thousands) 2018 Assets Cash $ 42 Accounts receivable Short-term investment Inventory 75 Land 50 Buildings and equipment 550 Less: Accumulated depreciation (115) $ 715 Liabilities Accounts payable $ 28 Salaries payable Interest payable Income tax payable Notes payable 0 Bonds payable 160 Shareholders' Equity Common stock 250 Paid-in capital-excess of par 126 Retained earnings 135 $ 715 $ 30 75 15 70 60 400 (75) $575 ON 00 $ 35 5 3 12 30 100 200 100 90 $575 $380 WRIGHT COMPANY Income Statement For Year Ended December 31, 2018 ($ in thousands) Revenues: Sales revenue Expenses: Cost of goods sold $130 Salaries expense 45 Depreciation expense 40 Interest expense 12 Loss on sale of land 3 Income tax expense 70 Net income 300 $ 80