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Requirements 1. Prepare the 2018 statement of cash flows, formatting operating activities using the indirect method. 2. How will what you learned in this problem help you evaluate an investment in Smithson Pet Supply, Inc.? Print Done omparative balance sheet Smithson Pet Supply, Inc. Comparative Balance Sheet December 31, 2018 and 2017 Increase 2018 2017 (Decrease) Current Assets: Cash and cash equivalents 5,800 $ 600 6,400 $ 25,500 Accounts receivable 26,900 Inventory Fixed Assets: (1,400) 2,100 91,600 89,500 Land 89,500 53,400 60,300 49,100 29,200 4,300 Equipment, net Total Assets $ 266,400 $ 231,600 $ 34,800 $ 35,400 $ Current Liabilities: Accounts payable Accrued liabilities Long-Term Liabilities: Notes payable 30,600 $ 30,400 (4,800) 2,200 28,200 78,000 98,000 (20,000) 2018 2017 (Decrease) Current Assets: Cash and cash equivalents $ 6,400 $ 600 5,800 $ Accounts receivable 26,900 (1,400) 25,500 91,600 Inventory 89,500 2,100 Fixed Assets: Land 89,500 53,400 60,300 49,100 29,200 4,300 Equipment, net $ 266,400 $ 231,600 $ 34,800 Total Assets Current Liabilities: 30,600 $ 35,400 $ (4,800) 2,200 30,400 28,200 Accounts payable Accrued liabilities Long-Term Liabilities: Notes payable Stockholders' Equity: Common stock 78,000 98,000 (20,000) 88,600 38,800 64,000 6,000 24,600 32,800 Retained earnings $ 266,400 $ 231,600 $ 34,800 Total Liabilities and Stockholders' Equity Smithson Pet Supply, Inc. Income Statement Year Ended December 31, 2018 Revenues: Sales revenue $ 213,000 8,300 Interest revenue Total revenues $ 221,300 $ 70,600 Expenses: Cost of goods sold Salaries expense Depreciation expense Other operating expenses Interest expense 27,200 4,200 10,300 11,100 28,600 Income tax expense Total expenses 152.000 Net Income $ 69,300 Smithson Pet Supply, Inc. Statement of Cash Flows Year Ended December 31, 2018 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Decrease in accounts receivable Increase in inventory Net cash provided by (used for) operating activities Cash flows from investing activities: Net cash provided by (used for) investing activities Cash flows from financing activities: Purvy porty US VILIU. Depreciation expense Decrease in accounts receivable Increase in inventory Net cash provided by (used for) operating activities Cash flows from investing activities: Net cash provided by (used for) investing activities Cash flows from financing activities: Net cash provided by (used for) financing activities Net increase (decrease) in cash: Cash balance, December 31, 2017 Cash balance, December 31, 2018

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