Exercise 123

The following information is taken from French Corporation's financial statements:

		December 31
		2018			2017
Cash		$ 75,920			$ 28,080
Accounts receivable		106,080			83,200
Allowance for doubtful accounts		(4,680)			(3,224)
Inventory		161,200			182,000
Prepaid expenses		7,800			7,072
Land		104,000			62,400
Buildings		300,560			253,760
Accumulated depreciation		(33,280)			(13,520)
Patents		20,800			36,400
		$738,400			$636,168
Accounts payable		$ 93,600			$ 87,360
Accrued liabilities		56,160			65,520
Bonds payable		130,000			62,400
Common stock		104,000			104,000
Retained earningsappropriated		83,200			10,400
Retained earningsunappropriated		287,040			314,808
Treasury stock, at cost		(15,600)			(8,320)
		$738,400			$636,168

		For 2018 Year
Net income		$76,232
Depreciation expense		19,760
Amortization of patents		5,200
Cash dividends declared and paid		31,200
Gain or loss on sale of patents		none

Prepare a statement of cash flows for French Corporation for the year 2018. (Use the indirect method.)

French Corporation Statement of Cash Flows

Increase (Decrease) in Cash

Adjustments to reconcile net income to