The 2018 comparative balance sheet and income statement of Appleton Group, Inc. follow. Appleton disposed of a plant asset at book value during 2018.

Prepare the spreadsheet for the 2018 statement of cash flows. Format cash flows from operating activities by the indirect method. A plant asset was disposed of for $0. The cost and accumulated depreciation of the disposed asset was $11,600. There were no sales of land, no retirement of common stock, and no treasury stock transactions.
Assume plant asset and land acquisitions were for cash.

Transcribed Image Text:

APPLETON GROUP, INC. Income Statement Year Ended December 31, 2018 $ 443,000 Net Sales Revenue Cost of Goods Sold 205,800 Gross Profit 237,200 Operating Expenses: $ 76,800 Salaries Expense Depreciation Expense-Plant Assets 15,400 Other Operating Expenses 49,300 Total Operating Expenses 141,500 95,700 Operating Income Other Income and (Expenses): Interest Revenue 11,600 (24,400) Interest Expense Total Other Income and (Expenses) (12,800) Net Income Before Income Taxes 82,900 Income Tax Expense 16,200 $ 66,700 Net Income APPLETON GROUP, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: $ 14,700 $ 15,900 Cash Accounts Receivable 42,200 43,900 Merchandise Inventory 97,600 93,900 Long-term Assets: Land 42,200 17,000 Plant Assets 121,950 110,750 Accumulated Depreciation-Plant Assets (20,250) (16,450) Total Assets $ 298,400 $ 265,000 Liabilities Current Liabilities: Accounts Payable $ 25,900 $ 26,900 Accrued Liabilities 24,500 22,700 Long-term Liabilities: Notes Payable 51,000 65,000 Total Liabilities 101,400 114,600 Stockholders' Equity Common Stock, no par 138,900 130,700 Retained Earnings 58,100 19,700 Total Stockholders' Equity 197,000 150,400 Total Liabilities and Stockholders' Equity $ 298,400 $ 265,000