assets 2018 2017

cash 40,800 48,400

account receivable 87,800 38,000

inventory 112,500 102,850

prepaid expenes 28,400 26,000

long-term investment 138,000 109,000

plant Assets 367,000 242,500

Accumulated depreciation (50,000) (52,000)

Total 724,500 514,750

Liability and stockholder's equity

Accounts payable 72,000 67,300

Accrued Expenses payable 13500 21,000

Dividends payable 3000 -

Bonds payable 170,000 146,000

Common Stocks 262,000 175,000

Retailed Earnings 204,000 105,450

Total 724,500 514,750

Additional information

1.old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1500 cash

2.A new plant asset was purchased directly in exchanged for common stock valued at $42,000

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 appropriately restated

Required

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