Hartman, Inc. has prepared the following comparative balancesheets for 2017 and 2018:
2018 2017
Cash $ 282,000 $ 153,000
Accountsreceivable 139,000 117,000
Inventory 150,000 180,000
Prepaidexpenses 18,000 27,000
Plantassets 1,295,000 1,050,000
Accumulateddepreciation (450,000) (375,000)
Patent 153,000 174,000
$1,587,000 $1,326,000
Accountspayable $ 153,000 $ 168,000
Accruedliabilities 60,000 42,000
Mortgagepayable — 450,000
Preferredstock 525,000 —
Additionalpaid-incapital—preferred 120,000 —
Commonstock 600,000 600,000
Retainedearnings 129,000 66,000
$1,587,000 $1,326,000
1. The AccumulatedDepreciation account has been credited only for the depreciationexpense for the period.
2. The RetainedEarnings account has been charged for dividends of $138,000 andcredited for the net income for the year.
The income statement for2018 is as follows:
Salesrevenue $1,980,000
Cost ofsales 1,089,000
Grossprofit 891,000
Operatingexpenses 690,000
Netincome $ 201,000
Instructions
(a) From theinformation above, prepare a statement of cash flows (indirectmethod) for Hartman, Inc. for the year ended December 31, 2018.
(b) From theinformation above, prepare a schedule of cash provided by operatingactivities using the direct method.
