Smither Software Corp. has assembled the following data for the years ending December 31, 2018 and 2017.

Requirement

1. Prepare Smither’s statement of cash flows using the indirect method to report operating activities. Include a schedule of noncash investing and financing activities.

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A1 December 31, 2017 1 2018 3 Current Accounts: 4 Current assets: Cash and cash equivalents 6. $ 66,500 $ 26,000 21,000 89,500 3,600 Accounts receivable Inventories 64,300 79,000 2,300 Prepaid expenses 8 9 Current liabilities: Accounts payable Income tax payable Accrued liabilities $ 58,100 $ 55,300 18,500 15,100 10 11 12 16,200 17,200 13 Transaction Data for 2018: Acquisition of land by issuing long-term note payable . $204,000 Purchase of treasury stock.. Loss on sale of equipment .. Payment of cash dividends . $14,500 4,000 Stock dividends . 31,400 19,000 Collection of loan.. . Depreciation expense Purchase of building 11,000 Issuance of long-term note 21,000 payable to borrow cash.. 24,400 Net income.. 66,000 with cash. 97,000 Issuance of common stock Retirement of bonds payable for cash . 37,000 by issuing common stock. 60,000 Proceeds from sale of Purchase of long-term equipment . Amortization expense...... 12,700 ....... investment with cash . 44,700 5,100