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The balance sheet for Plasma Screens Corporation, along with additional information, are provided below:
| PLASMA SCREENS CORPORATION Balance Sheets December 31, 2019 and 2018 |
| | 2019 | 2018 |
| Assets: | | | | |
| Current assets: | | | | |
| Cash | $ | 112,700 | $ | 131,800 |
| Accounts receivable | | 81,200 | | 96,000 |
| Inventory | | 103,000 | | 87,200 |
| Prepaid rent | | 5,600 | | 2,800 |
| Long-term assets: | | | | |
| Land | | 520,000 | | 520,000 |
| Equipment | | 822,000 | | 710,000 |
| | | | | |
| Total assets | $ | 1,208,500 | $ | 1,263,800 |
| | | | | |
| Liabilities and Stockholders' Equity: | | | | |
| Current liabilities: | | | | |
| Accounts payable | $ | 107,000 | $ | 92,200 |
| Interest payable | | 6,900 | | 13,800 |
| Income tax payable | | 9,600 | | 5,800 |
| Long-term liabilities: | | | | |
| Notes payable | | 115,000 | | 230,000 |
| Stockholders' equity: | | | | |
| Common stock | | 740,000 | | 740,000 |
| Retained earnings | | 230,000 | | 182,000 |
| | | | | |
| Total liabilities and stockholders' equity | $ | 1,208,500 | $ | 1,263,800 |
| | | | | |
| |
Additional Information for 2019:
- Net income is $77,000.
- The company purchases $112,000 in equipment.
- Depreciation expense is $152,000. The company repays $115,000 in notes payable.
- The company declares and pays a cash dividend of $29,000.
Required:
Prepare the full statement of cash flows using the indirect method for the operating cash flow?
Answer & Explanation
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