17. Malachi, Inc. has the following partial comparative balance sheet data for 2018-2019: December 31,...
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17. Malachi, Inc. has the following partial comparative balance sheet data for 2018-2019: December 31, 2019 December 31, 2018 Cash $ 153,500 $82,000 Accounts Receivable 22,000 46,000 Inventories 28,000 Equipment 260,000 105,000 Accumulated depreciation-equipment (7,000) (80,000) Accounts Payable 49,000 30,000 Dividends Payable 10,000 20,000 Common Stock, $1 par 2,500 1,000 Paid in capital, excess of price over par-Common stock 44,000 17,000 34.000 Additional 2019 data: i) 2019 Depreciation Expense was $7,000. ii) Old equipment (asset) was disposed of (sold) for $42,000 cash. This equipment had accumulated depreciation of $80,000 at the time of sale. iii) New equipment (asset) was acquired on January 1, 2019 for $260,000 cash. iv) 2019 Net Income was $264,000. v) 2019 Cash Dividends paid were $10,000. vi) Common Stock was issued for cash. Instructions: Prepare a Statement of Cash flows using the Indirect Method of presenting Cash Flows from Operating Activities (use format Exhibit 7, text pg. 622)
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