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The comparative statements of financial position of Mikos Inc. as at December 31, 2017 and 2018, and its statement of earnings for the year ended
The comparative statements of financial position of Mikos Inc. as at December 31, 2017 and 2018, and its statement of earnings for the year ended December 31, 2018, are presented below: MIKOS INC. Comparative Statements of Financial Position December 31 2018 2017 Assets Cash $ 9,800 $ 17,800 Short-term investments 58,600 30,400 Accounts receivable 72,000 29,200 Inventories, at cost 55,600 40,800 Prepaid expenses 4,800 7,600 Land 48,200 74,000 Property, plant, and equipment, net 283,200 183,000 Intangible assets 24,800 29,600 $ 557,000 $ 412,400 Liabilities and Shareholders' Equity Accounts payable Income tax payable Accrued liabilities Long-term notes payable Contributed capital Retained earnings $ 17,800 $ 41,600 7,600 1,800 10,800 -0- 118,000 166,000 216,000 64,000 186,800 139,000 $ 557,000 $412,400 $ 874,000 MIKOS INC. Statement of Earnings For the Year Ended December 31, 2018 Sales Cost of sales Amortization expenseintangible assets Depreciation expenseproperty, plant, and equipment Operating expenses Interest expense $ 438,000 4,800 33,800 229,000 12,800 718,400 Earnings before income taxes Income tax expense 155,600 46,680 Net earnings $ 108,920 Additional information is as follows: a. Land was sold for cash at its carrying amount. b. The short-term investments will mature in February 2019. c. Cash dividends were declared and paid in 2018. d. New equipment with a cost of $166,800 was purchased for cash, and old equipment was sold at its carrying amount. e. Long-term notes of $14,000 were paid in cash, and notes of $34,000 were converted to shares. Required: 1. Prepare a statement of cash flows for Mikos Inc. for the year ended December 31, 2018 by using the indirect method. (Negative answers should be indicated by a minus sign.) MIKOS INC. Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities: Adjustments to reconcile net earnings to net cash provided by operating activities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow from financing activities Cash and short-term investments, beginning of year Cash and short-term investments, end of year
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