Hi-Tech Fuel Injection Company, Inc.

Comparative Balance Sheet

December 31, 2019 and 2018

20192018

Assets

Cash $70,000 $33,000

Accounts receivable89,00055,000

Inventories123,000132,000

Prepaid expenses16,00025,000

Investments80,00065,000

Plant assets330,000250,000

Accumulated depreciation(68,000)(60,000)

Total$640,000$500,000

Liabilities and Stockholders' Equity

Accounts payable$85,000$72,000

Accrued expenses payable12,00021,000

Bonds payable100,000160,000

Common stock275,000170,000

Retained earnings168,00077,000

Total$640,000$500,000

Hi-Tech Fuel Injection Company, Inc.

Income Statement

For the Year Ended December 31, 2019

Sales $498,000

Less:

Cost of goods sold$280,000

Operating expenses (excluding depreciation)70,000

Depreciation expense8,000

Interest expense13,000

Loss on sale of investments.9,000

Income tax expense15,000395,000

Net income$103,000

Additional information:

1.No plant assets were sold in 2019.

2.Investments costing $30,000 were sold and additional investments were purchased for $45,000.

3.Bonds were redeemed at their face value.

4.Dividends were also declared and paid.

Required:

Prepare a statement of cash flows for the year ended December 31, 2019 using the indirect method.