QUESTION 52

1. The XYZ Corporation reported the following balance sheet data for 2018 and 2017:

   	2018	2017
   Cash	$60,375	$22,955
   Available-for-sale debt securities
   (not cash equivalents)	15,500	85,000
   Accounts receivable	91,000	68,250
   Inventory	165,000	145,000
   Prepaid insurance	1,500	2,000
   Land, buildings, and equipment	1,260,000	1,125,000
   Accumulated depreciation	(610,000)	(572,000)
   Total assets	$983,375	$876,205
   Accounts payable	$70,340	$148,670
   Salaries payable	20,000	24,500
   Notes payable (current)	25,000	75,000
   Bonds payable	200,000	0
   Common stock	300,000	300,000
   Retained earnings	368,035	328,035
   Total liabilities and shareholders' equity	$983,375	$876,205

   Additional information for 2018: (1.) Sold available-for-sale debt securities costing $69,500 for $74,000. (2.) Equipment costing $20,000 with a book value of $5,000 was sold for $6,000. (3.) Issued 6% bonds payable at face value, $200,000. (4.) Purchased new equipment for $155,000 cash. (5.) Paid cash dividends of $20,000. (6.) Net income was $50,000. Required: Prepare a statement of cash flows for 2018 in good form using the indirect method for cash flows from operating activities. USE Worksheet Provide in class.