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26) The following are comparative balance sheets and an income statement for Wentworth Company.
| Wentworth Company Balance Sheets as of December 31 |
| Assets | 2018 | 2017 |
| Cash | $21,500 | $120,000 |
| Accounts receivable | 195,000 | 105,000 |
| Inventory | 180,000 | 225,000 |
| Long-term investments | 0 | 60,000 |
| Totals | $396,500 | $510,000 |
| Liabilities and shareholders' equity | | |
| Accounts payable | $75,000 | $120,000 |
| Operating expenses payable | 24,000 | 15,000 |
| Bonds payable | 70,000 | 100,000 |
| Common stock | 125,000 | 125,000 |
| Retained earnings | 102,500 | 150,000 |
| Totals | $396,500 | $510,000 |
| Wentworth Company Income Statement For the Year Ended December 31, 2018 |
| Sales | | $560,000 |
| Cost of goods sold: | | |
| Beginning inventory | $225,000 | |
| Purchases | 330,000 | |
| Goods available for sale | 555,000 | |
| Less: ending inventory | 180,000 | |
| Cost of goods sold | | 375,000 |
| Gross profit | | 185,000 |
| Operating expenses | | 180,000 |
| Income from operations | | 5,000 |
| Other expenses: | | |
| Loss on sale of long-term investment | | (7,500) |
| Net loss | | ($2,500) |
Cash dividends of $45,000 were paid in 2018.
Required:
Prepare a statement of cash flows for 2018 using the indirect method for operating activities. Make sure to prepare all 3 activities.
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