III. Financial Statement Preparation: The Statement of Cash Flows

Company X Income Statement For the Year Ended 2018

Revenues $300,000 Expenses $210,000 Net Income $90,000

Company X Comparative Balance Sheet 12/31/18 December 31

2018 2017

Assets

Cash $42,000 $10,000 Accounts Receivable 33,000 15,000 Investments (Marketable Securities) 38,000 25,000 Truck 48,000 22,000 Computer 19,000 12,000 Accumulated Depreciation (7,300) (3,500) Total Assets $172,700 $80,500

Liabilities & Stockholders Equity Accounts Payable $7,500 $14,000 Bonds Payable 30,000 20,000 Total Liabilities $37,500 $34,000

Common Stock $82,000 $30,000 Retained Earnings 53,200 16,500 Total Stockholders Equity $135,200 $46,500

Total Liabilities and Stockholders Equity $172,700 $80,500

REQUIRED:

1. What amount was taken as depreciation expense?
2. What amount was paid as dividend?
3. Prepare a Statement of Cash Flows using the indirect method.