Requirement 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. (Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.)

Complete the statement one section at a time, beginning with the cash flows from operating activities.

All Wired, Inc.
Income Statement
Year Ended December 31, 2018
Net Sales Revenue		$441,000
Cost of Goods Sold		207,200
Gross Profit		233,800
Operating Expenses:
Salaries Expense	$69,400
Depreciation ExpensePlant Assets	14,100
Other Operating Expenses	10,000
Total Operating Expenses		93,500
Operating Income		140,300
Other Income and (Expenses):
Interest Revenue	9,000
Interest Expense	(21,400)
Total Other Income and (Expenses)		(12,400)
Net Income Before Income Taxes		127,900
Income Tax Expense		19,400
Net Income		$108,500

All Wired, Inc.
Comparative Balance Sheet
December 31, 2018 and 2017
		2018	2017
Assets
Current Assets:
Cash		$26,400	$15,300
Accounts Receivable		26,300	25,500
Merchandise Inventory		79,500	91,000
Long-term Assets:
Land		34,500	9,000
Plant Assets		120,540	111,480
Accumulated DepreciationPlant Assets		(20,640)	(19,780)
Total Assets		$266,600	$232,500
Liabilities
Current Liabilities:
Accounts Payable		$35,900	$30,200
Accrued Liabilities		28,000	31,000
Long-term Liabilities:
Notes Payable		72,000	104,000
Total Liabilities		135,900	165,200
Stockholders' Equity
Common Stock, no par		88,000	64,200
Retained Earnings		42,700	3,100
Total Stockholders' Equity		130,700	67,300
Total Liabilities and Stockholders' Equity		$266,600	$232,500

December 31, 2018 and 2017
		2018	2017
Assets
Current Assets:
Cash		$26,400	$15,300
Accounts Receivable		26,300	25,500
Merchandise Inventory		79,500	91,000
Long-term Assets:
Land		34,500	9,000
Plant Assets		120,540	111,480
Accumulated DepreciationPlant Assets		(20,640)	(19,780)
Total Assets		$266,600	$232,500
Liabilities
Current Liabilities:
Accounts Payable		$35,900	$30,200
Accrued Liabilities		28,000	31,000
Long-term Liabilities:
Notes Payable		72,000	104,000
Total Liabilities		135,900	165,200
Stockholders' Equity
Common Stock, no par		88,000	64,200
Retained Earnings		42,700	3,100
Total Stockholders' Equity		130,700	67,300
Total Liabilities and Stockholders' Equity		$266,600	$232,500

Additionally,

All WiredAll Wired

purchased land of

$ 25,500

by financing it 100% with long-term notes payable during

2018.

During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and accumulated depreciation of the disposed asset was

$13,240.

The plant acquisition was for cash.