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Kemp Inc., a bubble gum company, had the following statements prepared as of December 31, 2018 Comparative Balance Sheet As of December 31, 2018 12312018
Kemp Inc., a bubble gum company, had the following statements prepared as of December 31, 2018 Comparative Balance Sheet As of December 31, 2018 12312018 1212017 S 54,000 S37,000 26,000 Cash Accounts receivables Inventory Prepaid rent Land Buildings Accumulated depreciation Equipment Accumulated depreciation Total assets 4,000 4,000 45,000 200,000 (21,000) 193,000 6,000 70,000 200,000 (11,000) 68,000 S69.000 386.000 S 33,000 40,000 Accounts payable Bonds payable Common stock, $1 par Retained earnings 110,000 220,000 296.000 150,000 60,000 136.000 Total liabilities and stockholders' equity Kemp Inc Income Statement December 31.2018 $890,000 Sales Cost of goods sold Operating expenses Interest expense Loss on sale of equipment Income from operations 465,000 221,000 12,000 700,000 190,000 Income tax expense Net income Additional information: I. Operating expenses include depreciation expense. 2. Land was sold at its book value for cash. 3. Cash dividends of $55,000 were declared and paid. 4. Interest expense of $12,000 was paid in cash. 5. Equipment with a cost of $166,000 was purchased for cash. Equipment with a cost of $41,00 value of S36,000 was sold for $34,000 cash. 6. Bonds were redeemed at their book value for cash 7. Common stock ($1 par) was issued for cash structions. Prepare a statement of cash flows using the indirect method
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