Data Table Cash 34,900 21,500 Beginning bal Sale of long-term investment Collections from customers Issuance of common stock Receipts of dividends 661,200 61,000 16,700 Payments on accounts payable Payments of dividends Payments of salaries and wages Payments of interest Purchase of equipment Payments of other operating expenses Payment of long-term note payable Purchase of treasury stock Payment of income tax 399,000 47,900 143,600 30,200 31,400 34,200 41,100 26,600 20,800 Ending Bal 20,500 Common Stock Beginning bal Issuance for cash Issuance to acquire land Issuance to retire note payable Ending bal 84,500 61,000 40,000 20,000 205,500 Print Done i Data Table Spencer Electric Company Income Statement Year Ended December 31, 2018 Revenues: Sales revenue $ 689,100 16,700 705,800 $ 414,700 Dividend revenue Total revenue Expenses and losses: Cost of goods sold Salary and wage expense Depreciation expense Other operating expense Interest expense 137,600 54,200 44,100 31,300 18,000 700 Income tax expense Loss on sale of investments Total expenses and losses 700,600 5,200 $ Net income Print Done i Data Table opcrTCOI LICULTTU VUmpany Selected Balance Sheet Data December 31, 2018 Increase (Decrease) Current assets: $ (14,400) 27,900 (23,400) 400 40,000 (22,800) (22,200) Cash and cash equivalents Accounts receivable Inventories Prepaid expenses Land Equipment, net Long-term investments Current liabilities: Accounts payable Interest payable Salary payable Other accrued liabilities Income tax payable Long-term note payable Common stock Retained earnings Treasury stock (7,700) 1,100 (6,000) 10,300 (2,800) (61,100) 121,000 (42,700) 26.600 Print Done Requirement 1. Prepare the statement of cash flows of Spencer Electric Company for the year ended December 31, 2018, using the direct method to report operating activities. Also prepare the accompanying schedule of noncash investing and financing activities. Start by completing the cash flows from operating activities using the direct method. Then complete the statement of cash flows and the accompanying schedule of noncash investing and financing activities. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Spencer Electric Company Statement of Cash Flows (Direct Method) Year Ended December 31, 2018 Cash flows from operating activities: Receipts: Total cash receipts Payments: Total cash payments Net cash provided by (used for) operating activities Cash flows from investing activities: Net cash provided by (used for) investing activities Cash flows from investing activities: Net cash provided by (used for) investing activities Cash flows from financing activities: Net cash provided by (used for) financing activities Net increase (decrease) in cash Noncash investing and financing activities: Total noncash investing and financing activities Requirement 2. Use Spencer Electric's 2018 income statement and information from its selected balance sheet data to prepare a supplementary schedule of cash flows from operating activities using the indirect method. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Spencer Electric Company Partial Statement of Cash Flows (Indirect Method) Year Ended December 31, 2018 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Net cash provided by (used for) operating activities
