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Speedofflight Cars sells car accessories. At the end of 2018, the income statement and comparative balance sheet were prepared as shown below. Speedofflight Cars Balance

Speedofflight Cars sells car accessories. At the end of 2018, the income statement and comparative balance sheet were prepared as shown below.

Speedofflight Cars

Balance Sheet

As at January 3120182017AssetsCurrent AssetsCash$166,705$63,100Accounts Receivable$89,100$94,500Merchandise Inventory$212,000$190,700Prepaid Expenses$12,700$12,700Total Current Assets$480,505$361,000Noncurrent AssetsLand$0$38,000Equipment$330,000$330,000Less: Accumulated Depreciation$-25,500$-23,900Total Noncurrent Assets$304,500$344,100Total Assets$785,005$705,100LiabilitiesCurrent LiabilitiesAccounts Payable$52,700$46,400Notes Payable, Current Portion$7,000$7,000Total Current Liabilities$59,700$53,400Notes Payable, Long-Term Portion$62,000$69,000Total Liabilities$121,700$122,400Stockholders' EquityCommon Stock$153,000$153,000Retained Earnings$510,305$429,700Total Stockholders' Equity$663,305$582,700Total Liabilities and Equity$785,005$705,100

Additional Information:

During 2018, land was sold for a gain of $7,500. There was no purchase of equipment throughout the year.

Speedofflight Cars

Income Statement

For the Year Ended January 31, 2018Sales$566,000Cost of Goods Sold$339,600Gross Profit$226,400Operating ExpensesDepreciation Expense$1,600Other Operating Expenses$60,600Total Operating Expenses$62,200Income from Operations$164,200Other Income and ExpensesGain on Sale of Land$7,500Income before Income Tax$171,700Income Tax$60,095Net Income$111,605

Create the cash flow statement using the indirect method.

Do not enter dollar signs or commas in the input boxes.

Use the negative sign for a decrease in cash.

Speedofflight Cars

Cash Flow Statement

For the Year Ended January 31, 2018Cash Flow from Operating ActivitiesNet IncomeAnswer

Adjustments to Reconcile Net Income to CashDepreciation ExpenseAnswer

Gain on Sale of LandAnswer

Changes in Operating Assets and LiabilitiesIncrease in Accounts ReceivableAnswer

Increase in Merchandise InventoryAnswer

Increase in Accounts PayableAnswer

Net Cash Provided (Used) by Operating ActivitiesAnswer

Cash Flow from Investing ActivitiesSale of LandAnswer

Net Cash Provided (Used) by Investing ActivitiesAnswer

Cash Flow from Financing ActivitiesPayment of Notes PayableAnswer

Payment of Cash DividendAnswer

Net Cash Provided (Used) by Financing ActivitiesAnswer

Net increase (decrease) in cashAnswer

Cash at the Beginning of the YearAnswer

Cash at the End of the YearAnswer

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