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P11-73B. (Learning Objectives 2, 3, 4: Prepare the statement of cash flows- direct and indirect methods) To prepare the statement of cash flows, accountants for
P11-73B. (Learning Objectives 2, 3, 4: Prepare the statement of cash flows- direct and indirect methods) To prepare the statement of cash flows, accountants for Dartmouth Electric Company have summarized 2018 activity in two accounts: O 2,3,4 Cash Beginning bal Sale of long-term investment Collections from customers Issuance of common stock Receipts of dividends 90,100 Payments on accounts payable 32,400 Payments of dividends 387,000 62,000 143,500 26,800 31,900 Payments of other operating expenses 34,300 Payment of long-term note payable 41,700 28,900 18,900 661,400 Payments of salaries and wages 47,300 Payments of interest 17,000 Purchase of equipment rchase of treasury stock Payment of income tax Ending Bal 73,200 Common Stock Beginning bal Issuance for cash Issuance to acquire land Issuance to retire note payable Ending bal 78,800 47,300 80,000 18,000 224,100 A1 Dartmouth Electric Company Selected Balance Sheet Data December 31, 2018 Increase (Decrease) 3 4 5 Current assets: Cash and cash equivalents Accounts receivable Inventories 7 Prepaid expenses 8 Land 9 Equipment, net 10 Long-term investments 11 Current liabilities: 2 Accounts payable 13 Interest payable 14 Salary payable 6,900 27,400 (12,900) 500 80,000 4,400 41,000) (8,500) ,100 7,600 Other accrued liabilities 16 Income tax payable 17 Long-term note payable 18 Common stock 19 Retained earnings 0 Treasury stock 21 100 (59,700) 145,300 28,900 Requirements 1. Prepare the statement of cash flows of Dartmouth Electric for the year ended December 3 2018, using the direct method to report operating activities. Also prepare the accompanying schedule of noncash investing and financing activities 2. Use Dartmouth Electric's 2018 income statement and information from its selected balance sheet data to prepare a supplementary schedule of cash flows from operating activities using the indirect method
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