Boca Inc.

Balance Sheets

December 31

Assets 2018 2017

Cash 110,800 48,400

Accounts Receivable 38,000 87,800

Inventory 112,500 102,850

Prepaid Expenses 26,000 28,400

Long-term Investments 109,000 138,000

Plant Assets 397,000 242,500

Accumulated depreciation -50,000 -52,000

Total 743,300 595,950

Liabilities and Stockholders' 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 Stock 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 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 2017 correcting an understatement of

depreciation in 2015. The 2017 balance sheet is appropriately restated.

6. The decrease in Long-term Investments was due to a sale of investments at original cost

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

please show supporting computations.