Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method.
Digital Subscriptions, Inc. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 436,000 210,200 225,800 $ Cost of Goods Sold Gross Profit Operating Expenses: Salaries Expense Depreciation ExpensePlant Assets Other Operating Expenses Total Operating Expenses Operating Income Other Income and (Expenses): Interest Revenue 75,400 14,700 10,300 100,400 125,400 8,200 (21,300) Interest Expense Total Other Income and (Expenses) (13,100) Digital Subscriptions, Inc. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash Accounts Receivable Merchandise Inventory Long-term Assets: 27,000 $ 26,900 79,000 15,000 25,500 91,900 Land Plant Assets 35,300 115,710 (18,810) 13,000 113,150 (15,450) 243,100 Accumulated DepreciationPlant Assets $ 265,100 $ Total Assets Liabilities Liabilities Current Liabilities: Accounts Payable Accrued Liabilities Long-term Liabilities: 34,900 $ 28,000 30,700 30,600 78,000 102,000 Notes Payable Total Liabilities 140,900 163,300 Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholders' Equity 88,300 35,900 64,000 15,800 124,200 79,800 243,100 $ 265,100 $ Total Liabilities and Stockholders' Equity Net Sales Revenue $ 436,000 210,200 Cost of Goods Sold 225,800 Gross Profit Operating Expenses: Salaries Expense Depreciation ExpensePlant Assets 75,400 14,700 10,300 100,400 Other Operating Expenses Total Operating Expenses Operating Income Other Income and (Expenses): Interest Revenue 125,400 8,200 (21,300) Interest Expense (13,100) Total Other Income and (Expenses) Net Income Before Income Taxes 112,300 19,700 Income Tax Expense $ 92,600 Net Income Digital Subscriptions, Inc. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 436,000 210,200 225,800 $ Cost of Goods Sold Gross Profit Operating Expenses: Salaries Expense Depreciation ExpensePlant Assets Other Operating Expenses Total Operating Expenses Operating Income Other Income and (Expenses): Interest Revenue 75,400 14,700 10,300 100,400 125,400 8,200 (21,300) Interest Expense Total Other Income and (Expenses) (13,100) Digital Subscriptions, Inc. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash Accounts Receivable Merchandise Inventory Long-term Assets: 27,000 $ 26,900 79,000 15,000 25,500 91,900 Land Plant Assets 35,300 115,710 (18,810) 13,000 113,150 (15,450) 243,100 Accumulated DepreciationPlant Assets $ 265,100 $ Total Assets Liabilities Liabilities Current Liabilities: Accounts Payable Accrued Liabilities Long-term Liabilities: 34,900 $ 28,000 30,700 30,600 78,000 102,000 Notes Payable Total Liabilities 140,900 163,300 Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholders' Equity 88,300 35,900 64,000 15,800 124,200 79,800 243,100 $ 265,100 $ Total Liabilities and Stockholders' Equity Net Sales Revenue $ 436,000 210,200 Cost of Goods Sold 225,800 Gross Profit Operating Expenses: Salaries Expense Depreciation ExpensePlant Assets 75,400 14,700 10,300 100,400 Other Operating Expenses Total Operating Expenses Operating Income Other Income and (Expenses): Interest Revenue 125,400 8,200 (21,300) Interest Expense (13,100) Total Other Income and (Expenses) Net Income Before Income Taxes 112,300 19,700 Income Tax Expense $ 92,600 Net Income
