Lucas Company reported the following income statement and comparative balance sheets, along with transaction data for 2018 (Click the icon to view the income statement.) (Click the icon to view the balance sheet.) i (Click the icon to view the transaction data.) Requirement 1. Prepare Lucas Company's statement of cash flows (using the indirect method) for the year ended December 31, 2018. Take the following three steps outlined here. .... Step 1: From the comparative balance sheets, determine the increase in cash and cash equivalents during the year. The increase in cash and cash equivalents during the year is $ Transaction Data Steps Step 1 $ 97,000 Transaction Data for 2018: Purchase of equipment with cash Payment of cash dividends Issuance of common stock to Step 2 11,000 Issuance of long-term note payable to purchase patent Issuance of long-term note payable to 37,000 From the comparative balance sheets, determine the increase in cash and cash equivalents during the year. Prepare a T-account to show the transaction activity in each long-term balance sheet account. Complete the statement of cash flows. From the income statement, take net income, depreciation, amortization, and the loss on sale of equipment to the statement of cash flows. Account for the year-to-year change in each balance sheet account. Step 3 18,000 borrow cash 11,000 Issuance of common stock for cash 19,000 retire bonds payable Purchase of long-term investment with cash Purchase of treasury stock. .......... 9,000 Proceeds from sale of equipment (book value, $75,000) 9,000 72,000 Print Done Print Print Done - X Balance Sheet Income Statement Lucas Company Lucas Company Comparative Balance Sheets December 31, 2018 and 2017 Liabilities Income Statement Year Ended December 31, 2018 Assets 2018 2017 2018 2017 Sales revenue $ 652.000 536.000 Current: Current: Cost of goods sold Cash and cash $ 37.000 $ 30,000 Gross profit 116.000 equivalents Accounts receivable 1,000 8,000 9,000 8,000 $ 46,000 Operating expenses Salary expenses Depreciation expense-equipment Amortization expense-patent Inventories 46.000 47.000 8,000 60,000 12,000 5,000 3.000 34,000 52,000 Rent expense Prepaid expenses Total current assets Equipment, net Long-term investments Accounts payable $ 32,700 $ 11,000 Accrued liabilities 19.000 22.000 Income tax payable 44.000 32,000 Total current liabilities 2,000 6,000 Long-term note payable 97,700 71,000 Bonds payable 70,000 56,000 Stockholders' Equity 19,000 10,000 Common stock 37,000 5,000 Retained earnings Less: Treasury stock Total liabilities and $ 223,700 $ 142,000 stockholders' equity 62,000 59,000 22.000 Total operating expenses Income from operations Other items: 54,000 Patent, net 38,700 (14,000) 14.000 (5,000) Loss on sale of equipment Income before income tax (3,000) 51,000 15,300 $ 223,700 $ 142,000 Total assets Income tax expense $ 35,700 Net income
