Question

The Nancy Company's comparative balance sheets for 2018 and 2019, and additional information, are presented below.

Nancy Company Comparative Balance Sheets ​
​		December 31,	December 31,
ASSETS		2019	2018
Cash		$ 14,000	$ 9,000
Accounts receivable		52,000	24,000
Inventory		87,000	40,000
Equipment		125,000	100,000
Accumulated depreciation		(42,000)	(34,000)
Prepaid expenses		4,000	2,000
Land		-0-	7,000
Building		50,000	-0-
​	Total Assets	$290,000	$148,000
​		​	​
LIABILITIES AND SHAREHOLDERS' EQUITY		​	​
​		​	​
Accounts payable		$ 25,000	$ 14,000
Interest payable		8,000	6,000
Taxes payable		37,000	11,000
Short-term note payable		37,000	32,000
Bonds payable		75,000	50,000
Common stock, $10 par		75,000	25,000
Retained earnings		33,000	10,000
​	Total Liabilities and Shareholders’ Equity	$290,000	$148,000
​	​	​	​
Additional 2019 information:		​	​
​	Net income, $31,000	​	​
​	Sold land for gain of $3,000	​	​
​	Paid dividends of $8,000	​	​
​	Issued $50,000 common stock to purchase building	​	​

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Required:
Prepare Nancy Company's 2019 statement of cash flows using the indirect method.

Answer 1