| Based on the information provided below for Nash Company prepare a statement of cash flows using the Direct and Indirect methods. Prepare the statements on this worksheet below the data provided. Submit the worksheet provided in Excel. Show all your work. Grading will be roughly based on the accuracy of the statements prepared and the correct presentation of the statements. | | NASH COMPANY | | | COMPARATIVE BALANCE SHEET | | | AS OF MAY 31 | | | | | 2017 | | 2016 | | | Current assets | | | | | | | Cash | | $28,300 | | $20,100 | | | Accounts receivable | | 74,800 | | 57,600 | | | Inventory | | 219,200 | | 249,500 | | | Prepaid expenses | | 8,900 | | 7,100 | | | Total current assets | | 331,200 | | 334,300 | | | | | | | | | | Plant assets | | | | | | | Plant assets | | 596,000 | | 505,100 | | | Less: Accumulated depreciationplant assets | | 150,400 | | 124,300 | | | Net plant assets | | 445,600 | | 380,800 | | | Total assets | | $776,800 | | $715,100 | | | | | | | | | | Current liabilities | | | | | | | Accounts payable | | $122,200 | | $114,700 | | | Salaries and wages payable | | 47,700 | | 72,100 | | | Interest payable | | 26,700 | | 24,700 | | | Total current liabilities | | 196,600 | | 211,500 | | | | | | | | | | Long-term debt | | | | | | | Bonds payable | | 70,000 | | 100,000 | | | Total liabilities | | 266,600 | | 311,500 | | | | | | | | | | Stockholders equity | | | | | | | Common stock, $10 par | | 370,000 | | 280,000 | | | Retained earnings | | 140,200 | | 123,600 | | | Total stockholders equity | | 510,200 | | 403,600 | | | Total liabilities and stockholders equity | | $776,800 | | $715,100 | | | | | | NASH COMPANY | | | | | INCOME STATEMENT | | | | | FOR THE YEAR ENDED MAY 31, 2017 | | | | | Sales revenue | | $1,255,000 | | | | | Cost of goods sold | | 715,500 | | | | | Gross profit | | 539,500 | | | | | | | | | | | | Expenses | | | | | | | Salaries and wages expense | | 251,700 | | | | | Interest expense | | 74,300 | | | | | Depreciation expense | | 26,100 | | | | | Other expenses | | 8,100 | | | | | Total expenses | | 360,200 | | | | | Operating income | | 179,300 | | | | | Income tax expense | | 43,200 | | | | | Net income | | $136,100 | | | | | | | | The following is additional information concerning Nashs transactions during the year ended May 31, 2017. | | | | | | | | | 1 | All sales during the year were made on account. | | 2 | All merchandise was purchased on account, comprising the total accounts payable account. | | 3 | Plant assets costing $90,900 were purchased by paying $21,900 in cash and issuing 6,900 shares of stock. | | 4 | The other expenses are related to prepaid items. | | 5 | All income taxes incurred during the year were paid during the year. | | 6 | In order to supplement its cash, Nash issued 2,100 shares of common stock at par value. | | 7 | Cash dividends of $119,500 were declared and paid at the end of the fiscal year. | |
