The income statement, balance sheet, and analysis of selected accounts of Summer Company are given below.
Income Statement 2018
Sales revenue $ 800,000
Cost of goods sold (448,800)Depreciation expense (28,000)Patent amortization (400)Remaining expenses (including interest) (287,800)
Extraordinary gain, net of $5,000 tax 15,000
Net income $ 50,000
Analysis of selected accounts and entries:
a. Purchased operational asset; cost, $18,000; payment by issuing 1,200 shares of stock.
b. Payment at maturity date to retire bonds payable, $100,600.
c. Sold the longterm investments for $80,000. The market value of these securities classified as available for sale had not changed until 2018.
d. Purchased land, $56,800; paid cash.
e. Further information:
Retained earnings, beginning balance $56,000
Prior period adjustment, income tax, paid in 2018 (13,200)
Net income, 2018 50,000
Cash dividend paid (60,000)
Ending balance $32,800
Required: Prepare the SCF, indirect method.