Problem 1:

The following financial information is obtained regarding Stallion Company:

12/31/1912/31/18

Current Assets:

Cash190,00046,000

Accounts Receivable (net)140,00090.000

Merchandise Inventory120,000150,000

Prepaid Expenses7,0002,000

Supplies3,0004,000

Non-Current Assets:

Land100,000-0-

Plant Assets200,000200,000

Accumulated Depreciation(60,000)(40,000)

Total Assets700,000452,000

Current Liabilities:

Accounts Payable25,00033,000

Accrued Liabilities15,0009,000

Non-current Liabilities:

Notes Payable100,00020,000

Total Liabilities:140,00062,000

Common Stock ($1 Par Value)200,000140,000

Common Stock-APIC50,00010,000

Retained Earnings310,000240,000

Total Stockholders' Equity560,000390,000

Additional Data:

A) 2019 Net Income was $170,000

B) Land was acquired by taking out a Notes Payable for $90,000 and paying Cash for thebalance.

C) All Common Stock was issued for Cash.

REQUIRED:

Prepare the Statement of Cash Flow for Stallion Company under the Indirect Method.