ESSAY. Write your answer in the space provided or on a
separate sheet of paper.
12) Nashville Records Company uses the indirect method to
prepare its statement of cash flows. Refer to the following
sections of the comparative balance sheet:
                                                                  
Nashville Records Company
                                                                   
Comparative Balance Sheet
                                                                  
December 31, 2018 and 2017
                                                                                             
2018                     
2017    Increase (Decrease)
Accounts
Payable                                                        
$
6,000                  
$
9,000                   
$(3,000)
Accrued
Liabilities                                                         
3,000                     
1,500                       
1,500
Long-term Notes
Payable                                        
126,000                 
135,000                     
(9,000)
Total
Liabilities                                                        ...