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The following comparative balance sheets and other data are for Cellular Telephone Sales, Inc.: Format your statement as shown in Exhibit 26.5 below and be

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The following comparative balance sheets and other data are for Cellular Telephone Sales, Inc.: Format your statement as shown in Exhibit 26.5 below and be sure to add the reconciliation to CELLULAR TELEPHONE SALES, INC. the Cash balance on the balance sheet as part of the statement. Comparative Balance Sheets December 31, 2019 and 2018 2019 2018 B. Indirect Method WELBY COMPANY Assets Statement of Cash Flows For the Year Ended December 31, 2018 Cash $ 152,210 $102,000 Cash flows from operating activities: Accounts receivable, net 52,150 48,500 Net Income $ 10,000 Merchandise inventory 60,000 70,000 Adjustments to reconcile net income to net cash Provided by operating activities: Supplies on hand 3,500 5,100 Increase in accounts receivable (10,000) Prepaid expenses 2.800 2,400 Decrease in merchandise inventory 4,000 Decrease in accounts payable (6,000) Land 360,000 285,000 Increase in accrued liabilities payable 2,000 540,000 600,000 Depreciation expense 5,000 Equipment Net cash provided by operating activities $ 5,000 Accumulated depreciation-equipment (150,000) (135,000) Cash flows from investing activities: Total assets $1,020,660 $978,000 Purchase of equipment (20,000) Liabilities and Stockholders' Equity Cash flows from financing activities: Proceeds from issuing common stock $ 30,000 Accounts payable $ 90,660 $ 152,600 Paid cash dividends (4,000) Salaries payable 8,000 4,000 Net cash provided by financing activities 26,000 Accrued liabilities payable 4,000 16,500 Net increase (decrease) in cash $11,000 Long-term note payable 300,000 300,000 Common stock ($5 par) 370,000 330,000 Paid-in capital in excess of par 65,000 -0- Retained earnings 183,000 174,900 Total liabilities and stockholders' equity $1.020,660 $978,000 Land was bought for $75,000 cash. The company intends to build a building on the land. Currently, the company leases a building for its operations. Equipment costing $100,000 with accumulated depreciation of $60,000 was sold for $47,000 (a gain of $7,000), and equipment costing $40,000 was purchased for cash. Depreciation expense for the year was $75,000. Common stock was issued for $105,000 cash. Dividends declared and paid in 2019 totaled $65,900. Net income was $74,000. The company paid interest of $6,000 and income taxes of $34,000. Prepare a statement of cash flows under the indirect method. Also prepare any necessary supplemental schedule(s)

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