Press Exercise Equipment, Inc. reported the following financial statements for 2018: (Click the icon to view the income statement.) (Click the icon to view the comparative balance sheet.) i (Click the icon to view additional information.) Prepare the company's statement of cash flowsindirect methodfor the year ended December 31, 2018. Assume investments are purchased with cash. (Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.) Complete the statement one section at a time, beginning with the cash flows from operating activities. Press Exercise Equipment, Inc. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 716,000 347,000 Cost of Goods Sold Gross Profit 369,000 Operating Expenses: Depreciation Expense $ 51,000 Other Operating Expenses 195,000 Total Operating Expenses 246,000 $ 123,000 Net Income Press Exercise Equipment, Inc. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash 22,000 $ 17,000 Accounts Receivable 52,000 51,000 86,000 87,000 Merchandise Inventory Long-term Assets: Plant Assets 270,300 215,600 Accumulated DepreciationPlant Assets (45,300) 99,000 (36,600) 80,000 Investments $ 484,000 $ 414,000 Total Assets Liabilities Current Liabilities: Accounts Payable $ 78,000 $ 72,000 Salaries Payable 5,000 8,000 Long-term Liabilities: 57,000 66,000 Notes Payable Notes Payable 57,000 66,000 Total Liabilities 140,000 146,000 Stockholders' Equity Common Stock, no par 44,000 36,000 Retained Earnings 300,000 232,000 Total Stockholders' Equity 344,000 268,000 $ 484,000 $ 414,000 Total Liabilities and Stockholders' Equity Complete the statement one section at a time, beginning with the cash flows from operating activities. Press Exercise Equipment, Inc. Statement of Cash Flows Year Ended December 31, 2018 $ 123,000 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Depreciation Expense Increase in Accounts Receivable Decrease in Merchandise Inventory Increase in Accounts Payable Decrease in Salaries Payable 51,000 (1,000) 1,000 6,000 (3,000) 54,000 Net Cash Provided by (Used for) Operating Activities 177,000 Cash Payment for Acquisition of Plant Assets Cash Payment for Investments Cash Payment of Dividends Cash Payment of Notes Payable Cash Receipt from Issuance of Common Stock Decrease in Merchandise Inventory Decrease in Salaries Payable Depreciation Expense Gain on Disposal of Plant Assets Increase in Accounts Payable Increase in Accounts Receivable
