Statement of Cash Flows

Lingies Lights & Bulbs 2019 and 2018 Balance Sheets included the following items:

Lingies Lights & Bulbs

Comparative Balance Sheets

As of December 31st, 2019 and 2018

2019

2018

Cash

$53,050

$23,925

Accounts Receivable

34,125

39,825

Merchandise Inventory

156,000

146,475

Prepaid Expenses

3,600

1,650

Equipment

135,825

146,700

Accumulated Depreciation, Equipment

(61,950)

(47,550)

TOTAL ASSETS

$320,650

$311,025

Accounts Payable

28,800

33,750

Taxes Payable

5,100

4,425

Bonds Payable

0

37,500

Common Shares, no-par value

178,750

168,750

Retained Earnings

108,000

66,600

TOTAL LIABILITIES & EQUITY

$320,650

$311,025

Lingies Lights & Bulbs Income Statement are as follows:

Lingies Lights & Bulbs

Income Statement

For The Year Ended December 31st, 2019

Revenue:

Sales

446,100

Cost Of Goods Sold

222,300

Other Operating Expenses

120,300

Income Taxes Expense

13,725

Depreciation Expense

25,500

Total Expenses

(381,825)

Loss on Retirement of Bonds

(825)

Loss on Sale of Equipment

(3,300)

NET INCOME

$60,150

Required:

Prepare the STATEMENT OF CASH FLOWS using the indirect method for the year ended December 31, 2019. Additional information includes the following:

a. Equipment costing $21,375 with accumulated depreciation of $11,100 was sold for $6,975.

b. Equipment was purchased for cash in the amount of $10,500

c. Paid $38,325 to retire and cancel bonds payable

d. Dividends were paid

e. Issued 1,000 common shares for $10 per share