Use indirect method for Statement of cash flow. Here is an example

instructions

The following comparative balance sheets and other data are for Cellular Telephone Sales, Inc.: 2018 CELLULAR TELEPHONE SALES, INC. Comparative Balance Sheets December 31, 2019 and 2018 2019 Assets Cash $ 152,210 Accounts receivable, net 52,150 Merchandise inventory 60,000 Supplies on hand 3,500 Prepaid expenses 2,800 Land 360,000 Equipment 540,000 Accumulated depreciation-equipment (150,000) Total assets $1,020,660 Liabilities and Stockholders' Equity Accounts payable $ 90,660 Salaries payable 8,000 Accrued liabilities payable 4,000 Long-term note payable 300,000 Common stock ($5 par) 370,000 $102,000 48,500 70,000 5,100 2,400 285,000 600,000 (135,000) $978,000 $ 152,600 4,000 16,500 300,000 330,000 Accrued liabilities payable Long-term note payable Common stock ($5 par) Paid-in capital in excess of par Retained earnings Total liabilities and stockholders' equity 4,000 300,000 370,000 65,000 183,000 $1,020,660 16,500 300,000 330,000 -0- 174,900 $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. B. Indirect Method WELBY COMPANY Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities: Net income $ 10,000 Adjustments to reconcile net income to net cash Provided by operating activities: Increase in accounts receivable (10,000) Decrease in merchandise inventory 4,000 Decrease in accounts payable (6,000) Increase in accrued liabilities payable 2,000 Depreciation expense 5,000 Net cash provided by operating activities Cash flows from investing activities: Purchase of equipment Cash flows from financing activities: Proceeds from issuing common stock $ 30,000 Paid cash dividends (4,000) Net cash provided by financing activities Net increase (decrease) in cash $ 5,000 (20,000) 26,000 $11,000 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)