Prepare the statement of cash flow for the year ended December 31, 2019 using the indirect method.

Balance Sheets

December 31, 2019 and 2018

2019 2018

Assets

Current assets:

Cash $ 114,000 $ 33,000

Accounts receivable 126,000 112,000

Inventory 167,000 184,000

Total current assets (A) 407,000 329,000

Net property & equipment (B) 300,000 320,000

Total assets (A+B) $ 707,000 $649,000

Liabilities and Stockholders Equity

Current liabilities:

Accounts payable 174,000 $207,000

Note payable 135,000 119,000

Total current liabilities (A) 309,000 326,000

Long-term debt (B) 87,000 86,000

Total liabilities C= (A+B) 396,000 412,000

Stockholders equity:

Common stock 80,000 70,000

Retained earnings 231, 000 167,000

Total stockholders equity (D) 311,000 237,000

Total liabilities and equity (C+D) 707,000 $649,000

other information

• Net income for the year ended December 31, 2019 was $106,000.
• Dividends paid during the year ended December 31, 2019 were $42,000.
• Working capital (current assets minus current liabilities) at December 31, 2019 was $13,000.
• Long term debt increased by $1,000.
• Depreciation for 2019 was $20,000.
• The Company did not dispose of any property during 2019.