Question

Problem 2The following

information is related to Mitchell Company’s fiscal year 2018.

            Income Statement:

                        Net Income                             $300,000

                        Depreciation Expense               30,000

                        Loss on Sale of Plant Assets     10,000

                        Interest Expense                            500

            Balance Sheet – 12/31/18: 

                        Accounts Payable Increase       4,000

                Accounts Receivable Increase   5,000

                        Plant Assets – Purchased        200,000

                        Plant Assets – Proceeds

 from sale         100,000

            Additional Information:

                        Cash Balance – 12/31/2017:  $50,000

Common Stock exchanged for outstanding Long-Term Notes Payable of $150,000

                        Dividends paid were $30,000

Use this information to prepare the Statement of Cash Flows for Mitchell Company using the indirect method.

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