Comparative Balance Sheet

December 31, 2017

Assets 2017 2016

Cash $ 80,800 $ 48,400

Accounts Receivable $ 92,800 $ 33,000

Inventory $ 117,500 $ 102,850

Prepaid expenses $ 28,400 $ 26,000

Investments $ 143,000 $ 114,000

Equipment $ 270,000 $ 242,500

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

Total $ 682,500 $ 514,750

Liabilities and Stockholders' Equity 2017 2016

Accounts payable $ 112,000 $ 67,300

Accrued expenses payable $16,500 $ 17,000

Bonds payable $ 110,000 $ 150,000

Common stock $ 220,000 $ 175,000

Retained earnings $ 224,000 $ 105,450

Total $ 682,500 $ 514,750

The following information pertain to net income:

Sales revenue $ 454,707

Sales discount $ 56,240

Sales return and allowance $ 5,687

Beginning inventory $ 251,890

Purchases $ 511,692

Ending inventory $ 628,122

Operating expenses, including depreciation of $46,500 $ 58,910

Income tax expense $ 27,280

Interest expense $ 4,730

Loss on disposal of plant assets $ 7,500

Additional data:

1. New equipment costing $85,000 was purchased for cash during the year

2. Old equipment having an original cost of $57,000 was sold for $1,500 cash

3. Bonds matured and were paid off at face value for cash

4. A cash dividend of $40,350 was declared and paid during the year

Instructions

Prepare a statement of cash flows in Microsoft Excel using the indirect method.