Instructions: Using the indirect method, prepare in proper financial statement format a statement of cash flows for the year ended December 31, 2018. Use the table to prepare the statement. Do not change the formatting of the table; it is designed to help you fit the contents of the statement into the table.

Selected financial statement information for Johnston Enterprises appear below.

Johnston Enterprises

Balance Sheet and Income Statement Data

Dec. 31, 2018 Dec. 31, 2017

Assets

Cash $ 143,000 $ 119,000

Accounts Receivable 228,000 306,000

Inventory 391,000 340,000

Property, Plant, and Equipment 1,261,000 1,122,000

Less: Accumulated Depreciation (476,000) (442,000)

Total Assets $ 1,547,000 $ 1,445,000

Liabilities and Stockholders Equity

Liabilities:

Accounts Payable $ 187,000 $ 102,000

Notes Payable, Short-term 51,000 68,000

Income Taxes Payable 85,000 76,000

Bonds Payable 350,000 391,000

Total Liabilities 673,000 637,000

Stockholders' Equity:

Common Stock 510,000 468,000

Retained Earnings 364,000 340,000

Total Stockholders' Equity 874,000 808,000

Total Liabilities & Stockholders' Equity $ 1,547,000 $ 1,445,000

Sales Revenue $ 1,615,000 $ 1,513,000

Less Cost of Goods Sold 781,000 731,000

Gross Profit 834,000 782,000

Expenses:

Depreciation Expense 153,000 136,000

Salaries and Wages Expense 391,000 357,000

Interest Expense 34,000 34,000

Loss on Sale of Equipment 12,000 0

Income Before Taxes 244,000 255,000

Less Income Tax Expense 98,000 102,000

Net Income $ 146,000 $ 153,000

Additional Information:

During the year, Johnston sold equipment with an original cost of $133,000 and accumulated depreciation of $119,000 and purchased new equipment for $272,000.

Instructions: Using the indirect method, prepare in proper financial statement format a statement of cash flows for the year ended December 31, 2018. Use the table to prepare the statement. Do not change the formatting of the table; it is designed to help you fit the contents of the statement into the table.