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The balance sheet for Plasma Screens Corporation, along with additional information, are provided below: PLASMA SCREENS CORPORATION Balance Sheets December 31, 2018 and 2017 2018
The balance sheet for Plasma Screens Corporation, along with additional information, are provided below:
PLASMA SCREENS CORPORATION Balance Sheets December 31, 2018 and 2017 | ||||
2018 | 2017 | |||
Assets: | ||||
Current assets: | ||||
Cash | $ | 141,050 | $ | 151,500 |
Accounts receivable | 77,200 | 91,000 | ||
Inventory | 93,000 | 78,200 | ||
Prepaid rent | 3,600 | 1,800 | ||
Long-term assets: | ||||
Land | 470,000 | 470,000 | ||
Equipment | 768,000 | 660,000 | ||
Accumulated depreciation | (424,000) | (264,000) | ||
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Total assets | $ | 1,128,850 | $ | 1,188,500 |
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Liabilities and Stockholders' Equity: | ||||
Current liabilities: | ||||
Accounts payable | $ | 97,000 | $ | 83,200 |
Interest payable | 6,750 | 13,500 | ||
Income tax payable | 7,600 | 4,800 | ||
Long-term liabilities: | ||||
Notes payable | 112,500 | 225,000 | ||
Stockholders' equity: | ||||
Common stock | 690,000 | 690,000 | ||
Retained earnings | 215,000 | 172,000 | ||
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Total liabilities and stockholders' equity | $ | 1,128,850 | $ | 1,188,500 |
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Additional Information for 2018:
1. Net income is $67,000.
2. The company purchases $108,000 in equipment.
3. Depreciation expense is $160,000.
4. The company repays $112,500 in notes payable.
5 .The company declares and pays a cash dividend of $24,000.
Required:Prepare the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)
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