Question

	F. Prepare a statement of cash flow on both direct and indirect method
			2017	2016	Change
	Assets:
	Cash		215,000	70,000	145,000
	Accounts receivable, net		87,000	65,000	22,000
	Inventory		74,000	60,000	14,000
	Prepaid expenses		12,000	20,000	-8,000
	Property, palnt & equipment		780,000	600,000	180,000
	Accumulated depreciation		-110,000	-60,000	-50,000
	Total Assets		1,058,000	755,000	303,000
	Liabilities & Equity
	Accounts payable		32,000	40,000	-8,000
	Accrued liabilities		26,000	40,000	-14,000
	Taxes payable		15,000	4,000	11,000
	Long-term Notes Payable		100,000	0	100,000
	Common stock		200,000	200,000	0
	Additional paid in capital		326,000	276,000	50,000
	Retained earnings		359,000	195,000	164,000
	Total liabilities and equity		1,058,000	755,000	303,000
	Sales		1,400,000
	Cost of goods sold		780,000
	Gross profit		620,000
	Operating exoenses		290,000
	Pre-tax income		330,000
	Income taxes		66,000
	Net income		264,000
	a. Stock option expense of $50,000 was recognized in 2017
	b. Equipment of $180,000 was purchased using $100,000 note payable and cash

Answer 1