The following financial statements were issued by Hoskins Corporation for the fiscal year ended December 31, 2018. All amounts are in millions of U.S. dollars.

Additional information:

1. During fiscal year 2018, Hoskins Corporation acquired new equipment for $1,200 in cash. In addition, the company disposed of used equipment that had original cost of $1,300 and accumulated depreciation of $700, receiving $600 in cash from the buyer.

2. During fiscal year 2018, Hoskins Corporation arranged short-term bank financing and borrowed $1,500, using a portion of the cash to repay all of its outstanding long-term debt.

3. During fiscal year 2018, Hoskins Corporation engaged in no transactions involving its common stock, though it did declare and pay in cash a common stock dividend of $250. 

REQUIRED:

Prepare a statement of cash flows (all three sections) for Hoskins Corporation's fiscal year 2018, using the indirect method for the cash from operations section.

Transcribed Image Text:

Balance Sheete December 31, 2017 December 31, 2018 Assets Cash..... Accounts receivable. $ 300 $ 550 B00 1,500 Inventory.. Prepaid expenses. 400 500 400 150 Current assets... Property, plant, and equipment at cost. Less accumulated depreciation.. 1,700 2,700 6,200 6,100 (2,100) (1,750) Property, plant, and equipment, net. 4,100 4,350 Total assets. $5,800 $7,050 Liabilities and Shareholders' Equity Accounts payable... Income tax payable Short-term debt. $ 400 $ 800 200 100 1,200 2,700 Current liabilities.. 1,800 1,000 3,600 Long-torm debt... Total liabilities. 2,800 3,600 Contributed capítal Retained earnings 800 800 2,200 2,650 Total shareholders' equity... 3,000 3,450 Total liabilities and shareholders' equity. $5,800 $7,050