Question

using the select information below for 7aresh company, use the indirect method to prepare a complete 2019 statement of cash flows (including all three sections).

• 7aresh sold equipment for $8,000 cash during the year. The equipment was originally purchased for $27,000 and had accumulated depreciation of $20,000.
• 7aresh sold investments during the year for $3,000 cash. The investments were originally purchased for $5,000.
• 7aresh paid a cash dividend during the year totaling $1,000

2019 2018

Sales	$      500,000	$      480,000
Cost of goods sold	$     (400,000)	$     (380,000)
Depreciation expense	$       (40,000)	$       (35,000)
Utility expense	$       (45,000)	$       (44,000)
Wage expense	$       (12,000)	$       (11,000)
Gain on sale of equipment	$          1,000	$             500
Loss on sale of investment	$         (2,000)	$                -
Income tax expense (paid in cash)	$         (1,000)	$         (1,000)
Net income	$          1,000	$          9,500
Cash	$        60,500	$        12,000
Accounts receivable	$        22,000	$        20,000
Inventory	$        55,000	$        54,000
Equipment	$      173,000	$      200,000
Accumulated depreciation	$     (120,000)	$     (100,000)
Long-term investments	$          5,000	$        10,000
Accounts payable	$        21,000	$        22,000
Wages payable	$             500	$          1,000
Utility payable	$          2,000	$          1,000

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