Erie Company reported the following comparative balance sheets:

Additional Information:
1. Net income for 2019 was $20,500.
2. Cash dividends of $7,900 were declared and paid during 2019.
3. Long-term investments with a cost of $28,600 were sold for cash at a gain of $4,100. Additional long-term investments were purchased for $14,400 cash.
4. Equipment with a cost of $14,800 and accumulated depreciation of $13,500 was sold for $3,800 cash. New equipment was purchased for $27,350 cash.
5. Depreciation expense was $18,900.
6. A principal payment of $25,000 was made on long-term notes.
7. Common stock was sold for $31,500 cash.
Required:
Prepare a statement of cash flows for Erie using the indirect method to compute net cash flow from operating activities?

Transcribed Image Text:

2019 2018 Assets: $ 33,200 $ 12,750 44,800 27,500 Cash Accounts receivable Inventory Prepaid rent Investments (long-term) Property, plant, and equipment Accumulated depreciation 53,000 29,500 2,200 17,600 162,000 (61,600) $235,900 6,200 31,800 149,450 (56,200) $216,300 Total assets Liabilities and Equity: Accounts payable Interest payable Wages payable Income taxes payable Notes payable $ 16,900 3,500 9,600 5,500 28,000 $ 19,500 4,800 7,100 3,600 53,000 68,500 Common stock 100,000 Retained earnings Total liabilities and equity 72,400 59,800 $235,900 $216,300