The balance sheets for Plasma Screens Corporation, along with additional information, are provided below:
PLASMA SCREENS CORPORATION
Balance Sheets
December 31, 2018 and 2017
2018 2017
Assets:
Current assets:
Cash $ 50,350 $ 141,800
Accounts receivable 62,500 77,600
Inventory 79,100 94,000
Prepaid rent 7,750 3,800
Long-term assets:
Land 475,000 475,000
Equipment 1,004,000 774,000
Accumulated depreciation (588,000) (427,000)
Total assets $ 1,090,700 $ 1,139,200
Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable $ 84,100 $ 98,000
Interest payable 5,350 6,900
Income tax payable 13,750 7,800
Long-term liabilities:
Notes payable 32,500 115,000
Stockholders' equity:
Common stock 695,000 695,000
Retained earnings 260,000 216,500
Total liabilities and stockholders' equity $ 1,090,700 $ 1,139,200
Additional Information for 2018:
1. Net income is $68,000.
2. The company purchases $230,000 in equipment.
3. Depreciation expense is $161,000.
4. The company repays $82,500 in notes payable.
5 .The company declares and pays a cash dividend of $24,500.
Required:
a. Prepare the statement of cash flows using the indirect method.