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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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