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please need help 2018 $ 35,000 53,000 132.000 25,000 75,000 250,000 (60,000) $510.000 Condensed financial data of Drake Company appear below: DRAKE COMPANY Comparative Balance
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2018 $ 35,000 53,000 132.000 25,000 75,000 250,000 (60,000) $510.000 Condensed financial data of Drake Company appear below: DRAKE COMPANY Comparative Balance Sheet December 31 2019 Assets Cash $ 41.000 Accounts receivable 75,000 Inventories 120,000 Prepaid expenses 19.000 Investments 100,000 Plant assets 325,000 Accumulated depreciation (65,000) Total $615.000 Liabilities and Stockholders' Equity Accounts payable $ 93,000 Accrued expenses payable 29,000 Bonds payable 120,000 Common stock 275,000 Retained eamings 98,000 Total $615.000 DRAKE COMPANY Income Statement For the Year Ended December 31, 2019 Sales Less: Cost of goods sold $300,000 Operating expenses (excluding depreciation) 60,000 Depreciation expense 17,000 Income taxes 20,000 Interest expense 18,000 Loss on sale of plant assets 3.000 Net income $ 75,000 24,000 160,000 170,000 81.000 $510.000 $450,000 418.000 $ 32.000 Additional information: 1. New plant assets costing $100,000 were purchased for cash in 2019. 2. Old plant assets costing $25,000 were sold for $10,000 cash when book value was $13,000. 3. Bonds with a face value of $40,000 were converted into $40,000 of common stock, 4. A cash dividend of $15,000 was declared and paid during the year. 5. Accounts payable pertain to merchandise purchases. Instructions Prepare a statement of cash flows for the year using the direct method or the indirect methodStep by Step Solution
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