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I. Prepare a statement of cash flow on both a direct and indirect basis 2017 2016...

I. Prepare a statement of cash flow on both a direct and indirect basis
2017 2016 Change
Assets:
Cash 215,000 70,000 145,000
Accounts receivable, net 87,000 55,000 32,000
Inventory 74,000 60,000 14,000
Prepaid expenses 12,000 20,000 -8,000
Investments 70,000 80,000 -10,000
Property, plant & equipment 750,000 550,000 200,000
Accumulated depreciation -90,000 -70,000 -20,000
Patents 6,000 10,000 -4,000
Total Assets 1,124,000 775,000 349,000
Liabilities & Equity
Accounts payable 37,000 50,000 -13,000
Accrued liabilities 26,000 40,000 -14,000
Taxes payable 18,000 4,000 14,000
Long-term Notes Payable 100,000                         -    100,000
Common stock 200,000 200,000 0
Additional paid in capital 336,000 286,000 50,000
Retained earnings 407,000 195,000 212,000
Total liabilities and equity 1,124,000 775,000 349,000
Sales 1,450,000
Cost of goods sold 780,000
Gross profit 670,000
Operating expenses 290,000
Pre-tax Operating income 380,000
Gain on sale of investments 6,000
Gain on sale of equipment 4,000
Pre-tax income 390,000
Income taxes 78,000
Net income 312,000
a. Stock option expense of $50,000 was recognized in 2017
b. Equipment of $210,000 was purchased using $100,000 note payable and cash
c. Equipment with cost of $10,000 and book value of $5,000 was sold for $9,000
d. Investments with a cost of $10,000 were sold for $16,000

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