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Boca Inc. Balance Sheets December 31 Assets Cash Accounts Receivable Inventory Prepaid Expenses Long-term Investments Plant Assets Accumulated depreciation Total Liabilities and Stockholders' Equity Accounts
Boca Inc. Balance Sheets December 31 Assets Cash Accounts Receivable Inventory Prepaid Expenses Long-term Investments Plant Assets Accumulated depreciation Total Liabilities and Stockholders' Equity Accounts Payable Accrued Expenses Payable Dividends Payable Bonds Payable Common Stock Retained Earnings Total 2018 110,800 38,000 112,500 26,000 109,000 397,000 -50,000 743,300 2017 48,400 87,800 102,850 28,400 138,000 242,500 -52,000 595,950 67,300 21,000 72,000 13,500 3,000 170,000 262,000 222,800 743,300 146,000 175,000 186,650 595,950 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. Required: 1. Prepare a 2018 statement of cash flows using the indirect method. Use the textbook format (pages 1,339, 1,342, 1,345). Do not submit supporting computations
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