assets 2018 2017
cash 40,800 48,400
account receivable 87,800 38,000
inventory 112,500 102,850
prepaid expenes 28,400 26,000
long-term investment 138,000 109,000
plant Assets 367,000 242,500
Accumulated depreciation (50,000) (52,000)
Total 724,500 514,750
Liability and stockholder's equity
Accounts payable 72,000 67,300
Accrued Expenses payable 13500 21,000
Dividends payable 3000 -
Bonds payable 170,000 146,000
Common Stocks 262,000 175,000
Retailed Earnings 204,000 105,450
Total 724,500 514,750
Additional information
1. old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1500 cash
2. A new plant asset was purchased directly in exchanged for common stock valued at $42,000
3. New bond were issued at par for $60,000.
4. Net income was $154,480
5. A $1,000 prior period adjustment was recorded in 2017 correcting an understatement of depreciation in 2015.The 2017 balance sheet is appropriately restated
Required
1. Prepare a 2018 statement of cash flows using the indirect method. submit supporting computations.