Assets 2018 2017

cash 110,800 48,400

Account Receivable 38,000 87,000

Inventory 112,500 102,850

Prepaid expenses 26,000 28,400

Long time investment 109,000 138,000

Plant Assets 397,000 242,500

Accumulated depreciation -50,000 -52,000

Total 743,300 595,950

Liabilities and stockholder's Equity

Accounts Payable 72,000 67,300

Accrued Expenses Payable 13,500 21,000

Dividends Payable 3,000 -

Bonds payable 170,000 146,000

common stocks 262,000 175,000

Retained Earnings 222,800 186,650

Total 743,300 595,950

Additional information

1. old plant assets having an original cost of $ 57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash.

2.A new plant asset was purchased directly in exchanged for common stock valued at $42,00.

3.New bond were issued at par for $60,000.

4.Net income was $154,480.

5.A $1,000 prior period adjustment was recorded in 2017 correcting an understatement of depreciation in 2015.The 2017 balance sheet is appropriate restarted.

Required

1.Prepare a 2018 statement of cash flows using the indirect method.submit supporting computations.