Question
Boca Inc. Balance Sheets December 31 Assets 2018 2017 Cash 40,800 48,400 Accounts Receivable 87,800 38,000 Inventory 112,500 102,850 Prepaid Expenses 28,400 26,000 Long-term Investments
Boca Inc. | ||
Balance Sheets | ||
December 31 | ||
Assets | 2018 | 2017 |
Cash | 40,800 | 48,400 |
Accounts Receivable | 87,800 | 38,000 |
Inventory | 112,500 | 102,850 |
Prepaid Expenses | 28,400 | 26,000 |
Long-term Investments | 138,000 | 109,000 |
Plant Assets | 367,000 | 242,500 |
Accumulated depreciation | (50,000) | (52,000) |
Total | 724,500 | 514,750 |
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 | 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 $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. 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. |
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