The comparative balance sheet for the ZYX Company at December 31, 2019 and 2018 is as follows:
12/31/19 12/31/18
Assets:
Cash $146,600 $179,800
Accounts Receivable 224,600 242,000
Merchandise Inventory 321,600 299,200
Prepaid Expenses 13,400 9,600
Equipment 655,000 537,000
Accumulated depreciation-equipment (170,800) (132,200)
Total Assets $1,190,400 $1,135,400
Liabilities and Stockholders Equity
Accounts payable (merchandise creditors) $250,200 $237,600
Mortgage note payable 0 336,000
Common Stock, $10 par 74,000 24,000
Paid in Capital-common stock 470,000 320,000
Retained Earnings 396,200 217,800
Total Liabilities and Stockholders Equity $1,190,400 $1,135,400
Additional data obtained from an examination of the accounts in the ledger for 2019 are as follows:
a) Net Income, $332,000
b) Depreciation reported on the income statement, $83,400
c) Equipment was purchased at a cost of &162,800 and fully depreciated equipment costing $44,800 was discarded.
d) The mortgage note payable was not due until 2021 but the terms permitted earlier payment without penalty
e) 10,000 shares of common stock were issued at $20 for cash
f) Cash dividends declared and paid, $153,600
Instructions: Prepare a statement of cash flows using the indirect method.
