Selected financial statement information and additional data for Johnston Enterprises is presented below

Johnston Enterprises

Balance Sheet and Income Statement Data

December 31, December 31,

2017 2016___

Current Assets:

Cash $153,000 $119,000

Accounts Receivable 238,000 306,000

Inventory 391,000 340,000

Total Current Assets 782,000 765,000

Property, Plant, and Equipment 1,241,000 1,122,000

Less: Accumulated Depreciation (476,000) (442,000)

Total Assets $1,547,000 $1,445,000

Current Liabilities:

Accounts Payable $187,000 $102,000

Notes Payable 51,000 68,000

Income Taxes Payable 85,000 76,500

Total Current Liabilities 323,000 246,500

Bonds Payable 340,000 391,000

Total Liabilities 663,000 637,500

Stockholders' Equity:

Common Stock 510,000 467,500

Retained Earnings 374,000 340,000

Total Stockholders' Equity 884,000 807,500

Total Liabilities & Stockholders' Equity $1,547,000 $1,445,000

Sales Revenue 1,615,000 $1,513,000

Less Cost of Goods Sold 751,000 731,000

Gross Profit 864,000 782,000

Expenses:

Depreciation Expense 153,000 136,000

Salaries and Wages Expense 391,000 357,000

Interest Expense 34,000 34,000

Loss on Sale of Equipment 12,000 0

Income Before Taxes 274,000 255,000

Less Income Tax Expense 110,000 102,000

Net Income $164,000 $153,000

Additional Information:

During the year, Johnston sold equipment with an original cost of $153,000 and accumulated depreciation of $119,000. They purchased new equipment for $272,000.

Hint: Cash flow from the sale of equipment = $22,000. Net increase in cash = $34,000.

Required:

Prepare a statement of cash flows for the year ending December 31, 2017.