Boca Inc.

Balance Sheets

December 31

Assets 2018 2017

Cash 60,800 48,400

Accounts Receivable 87,800 38,000

Inventory 102,850 112,500

Prepaid Expenses 28,400 26,000

Long-term Investments 138,000 109,000

Plant Assets 347,000 242,500

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

Total 714,850 524,400

Liabilities and Stockholders' Equity

Accounts Payable 67,300 72,000

Accrued Expenses Payable 21,000 13,500

Dividends Payable 3,000 -

Bonds Payable 170,000 146,000

Common Stock 262,000 175,000

Retained Earnings 191,550 117,900

Total 714,850 524,400

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 exchange for common stock valued at $42,000.

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

4. 2018 Net income was $154,480.

5. A $1,000 prior period adjustment was recorded in 2018 to correct an understatement of depreciation in 2015.The 2017 balance sheet is appropriately restated.

6. Accounting for the long-term investments was appropriately using the equity method. Boca's share of investee net income was $20,000. Other changes in Long-term investments were caused by additional stock purchases. No dividends were received.

Required

1.Create a 2018 statement of cash flows using the indirect method.