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Part II. The following is Noel Corporation's comparative balance sheets for 2018 and 2017: December 31, 2018 2017 $ Cash Accounts receivable Inventories Property, plant,
Part II. The following is Noel Corporation's comparative balance sheets for 2018 and 2017: December 31, 2018 2017 $ Cash Accounts receivable Inventories Property, plant, and equipment Accumulated depreciation Investment in Trent Corporation Loan receivable Total assets 400,000 $ 564,000 925,000 1,653,500 (582,500) 152,500 135,000 3.247.500 S 350,000 584,000 857,500 1,483,500 (520,000) 137.500 S 2.892 500 477,500 25,000 45,000 Accounts payable Income taxes payable Dividends payable Capital lease obligation Capital stock, common. Si par Additional paid-in capital Retained earnings Total liabilities and stockholders' equity S 507,500S 15,000 40,000 200,000 250,000 750,000 1.485,000 3.247,500 $ 250,000 750,000 1,345,000 2.892.500 Additional information: 1. On December 31, 2017, Noel acquired 25 percent of Trent Corporation's common stock for $137.500. On that date, the carrying value of Trent's net assets and liabilities (which approximated fair value) was $550,000. Trent reported income of $60,000 for the year ended December 31, 2008. No dividend was paid on Trent's common stock during the year. 2. During 2018, Noel loaned S150,000 to Lee Company, an unrelated entity. Lee made the first semi- annual principal payment of $15,000, plus interest at 10 percent, on October 1, 2018 3. On January 2, 2018, Noel sold equipment costing $30,000, with a carrying value of $17.500, for $20,000 cash 4. On January 2, 2018, Noel entered into a capital lease for an office building. The present value of the annual rental payments is $200,000, which equals the fair value of the building. Noel made the first lease payment of S30,000 when due on January 2, 2019. 5. Noel's net income for 2018 was $180,000. 6. Noel declared and paid cash dividends for 2018 and 2017 as follows: 2018 2017 Declared Dec. 15, 2018 Dec. 15, 2017 Paid Feb. 28, 2019 Feb. 28, 2018 Amount $ 40,000 S 45,000 Required: Prepare a statement of cash flows for Noel Company for 2018 using the indirect method. Show your works
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