Instruction:

Prepare a statement of cash flows for 2018 using the indirect method.

Part B Comparative balance sheets for Lonely Company are presented below. Lonely Company Comparative Balance Sheets As at 31 December Assets 2018 (RM) Cash 58,000 Account Receivables 85,000 Inventories 180,000 Land 80,000 Equipment 260,000 Accumulated Depreciation (66,000) Total 597,000 2017 (RM) 22.000 76,000 189,000 100,000 200,000 (42.000) 545,000 Liabilities and Stockholder Equity Accounts payable Bonds payable Common stock (RM 1 par) Retained Earnings Total 34,000 150.000 194,000 219,000 597,000 47,000 200,000 164,000 134.000 545,000 Additional information: 1. Net income for 2018 was RM125,000. 2. Cash dividends of RM 40,000 were declared and paid. 3. Bonds payable amounting to RM 50,000 were redeemed for cash RM 50,000. 4. Common stock was issued for RM 30,000 cash. 5. Depreciation expense was RM 24,000. 6. Sales for the year were RM 978,000. Instruction: Prepare a statement of cash flows for 2018 using the indirect method. (12 marks)