The following information relates to the Cisco Corporation forthe years ended December 31.
Cisco Corporation
Comparative Balance Sheets
December 31
Assets | 2019 | | 2018 |
Cash | $ 92,700 | | $ 33,400 |
Accounts receivable | 70,800 | | 37,000 |
Inventory | 131,900 | | 102,650 |
Investments | 84,500 | | 107,000 |
Equipment | 310,000 | | 205,000 |
Accumulated depreciation - equipment | (49,500) | | (40,000) |
Total | $640,400 | | $445,050 |
Liabilities and Stockholders’ Equity | | | |
Accounts payable | $ 62,700 | | $ 48,280 |
Accrued expenses payable | 15,100 | | 18,830 |
Bonds payable | 140,000 | | 70,000 |
Common stock | 250,000 | | 200,000 |
Retained earnings | 172,600 | | 107,940 |
Total | $640,400 | | $445,050 |
Cisco Corporation Income Statement For the Year Ended December 31, 2019 |
Sales revenue | $ | | $297,500 |
Gain on sale of plant assets | | | 5,000 |
| | | 302,500 |
Less: | | | |
Cost of goods sold | $119,460 | | |
Operating expense excluding depreciation | 14,670 | | |
Depreciation expense | 35,500 | | |
Income tax expense | 27,270 | | |
Interest expense | 2,940 | | 199,840 |
Net income | | | $102,660 |
Additional information:
1.  New equipment costing $141,000 werepurchased for cash during the year.
2.  Investments were sold at cost.
3.  Old equipment costing $36,000 weresold for $15,000. The equipment had a book value of $10,000 at thetime of the sale..
4.   A cash dividend of $38,000was declared and paid during the year
Instructions:
| Prepare a statement of cash flows for the year ended December31, 2019 using the indirect method. |
