1. ased on the information given below, prepare the Statement of Cash Flows for Clay Company for the year ended December 31, 2019, using the indirect method.

Clay Company

Comparative Balance Sheets

31/12/2019 31/12/2018

Cash $ 33,250 $ 20,000

Accounts receivable 80,000 58,000

Inventory 210,000 250,000

Prepaid expenses 9,000 7,000

Plant assets 600,000 502,000

Accumulated depreciation (150,000) (125,000)

Total assets $ 782,250 $ 712,000

Accounts payable $ 123,000 $ 115,000

Salaries payable 47,250 72,000

Interest payable 27,000 25,000

Bonds payable 70,000 100,000

Common stock, $ 10 par 370,000 280,000

Retained earnings 145,000 120,000

Tot. liabilities and stockholderseq. $ 782,250 $ 712,000

Additional information about transactions that occured during 2019:

1. Plant assets costing $98,000 were purchased by paying $48,000 in cash and issuing 5,000 shares of stock.
2. Income taxes of $43,000 were paid in full.
3. In order to supplement cash, Clay Company issued 4,000 shares of common stock at par value.
4. Cash dividends of $105,000 were declared and paid at the end of the fiscal year.