Andrew's, Inc. Income Statement For the Year Ended December 31, 2018 Net sales Cost of goods sold Gross profit Operating expenses Income from operations Other revenues and gains Gain on sale of investments Other expenses and losses Loss on disposal of equipment Income before income taxes Income tax expense Net Income Andrew's, Inc. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 ASSETS Current assets Cash and cash equivalents $ 70,000 $ 51,000 | Accounts receivable 145,000 122,000 | Merchandise inventory 75.000 61,000 Total current assets 290,000 234,000 Long-term investments Investments 55,000 85,000 Property, plant, and equipment | Land 40,000 25,000 Building 145,000 145,000 Less: Accumulated depreciation (37,000) Equipment 70,000 48,000 Less: Accumulated depreciation (21,000)| (14,000) Total assets $ 542,000 $ 495,000 $ 950,000 (600,000) 350,000 (250,000) 100,000 15,000 (3.000 112,000 (45,000) 67,000 $ $ 66,000 12,000 78,000 60,000 10,000 70,000 Liabilities and Stockholders' Equity Current liabilities | Accounts pavable s Income tax payable Total current assets 1 Long-term Liabilities Notes payable Total liabilities Stockholders' equity | Common stock Retained earnings Total Stockholders' Equity Total Liabilities & Stockholders' Equity 62,000 140,000 70,000 140,000 310.000 260,000 92,000 95,000 402,000 355,000 S542,000 $495,000 Additional Information: A. Equipment that cost $10,000 and was 60% depreciated was sold and cash was received. B. Cash dividends were declared and paid. C. Common Stock was issued in exchange for Land. D. Investments that cost $35,000 were sold. Required: Prepare, in good form, a Statement of Cash Flows using the indirect method. Post activity in these accounts to arrive at amounts needed for the Statement of Cash Flows. ASSETS LIABILITIES EQUITY Dr. |_ Cr. . Dr. (+) Equipment ----- - 48,000 Retained Earnings ------_95,000 -- - - - - - - - - - - - - - - - - - - --- - -- - - -- - -- - - - - - - - - - - - 70,0001 92,000 Accumulated Depreciation ----- 14,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - + - - - - - - - - - - - 21.000 Journal Entry to record sale of Equipment: Cash Accumulated Depreciation Loss Equipment Andrew's, Inc. Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities Net Income Adjustments to reconcile net income to net cash provided by operating activities: Net cash provided (used) by operating activities Cash flows from investing activities Net cash provided (used) by investing activities Cash flows from financing activities Net cash provided (used) by financing activities Net increase (decrease) in cash Cash at beginning of year Cash at end of year Supplemental Schedule of Noncash Investing and Financing Activities