To prepare the statement of cash flows, accountants for Dartmouth Electric Company have summarized 2018 activity in two accounts:

Dartmouth Electric’s 2018 income statement and balance sheet data follow:

Requirements

1. Prepare the statement of cash flows of Dartmouth Electric for the year ended December 31, 2018, using the direct method to report operating activities. Also prepare the accompanying schedule of noncash investing and financing activities.

2. Use Dartmouth Electric’s 2018 income statement and information from its selected balance sheet data to prepare a supplementary schedule of cash flows from operating activities using the indirect method.

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Cash 90,100 Payments on accounts payable 32,400 Payments of dividends 661,400 Payments of salaries and wages 47,300 Payments of interest 17,000 Purchase of equipment Payments of other operating expenses Payment of long-term note payable Purchase of treasury stock Payment of income tax Beginning bal Sale of long-term investment 387,000 62,000 Collections from customers 143,500 Issuance of common stock 26,800 Receipts of dividends 31,900 34,300 41,700 28,900 18,900 73,200 Ending Bal Common Stock Beginning bal 78,800 Issuance for cash 47,300 Issuance to acquire land 80,000 Issuance to retire note payable |Ending bal 18,000 224,100 A1 Dartmouth Electric Company Income Statement Year Ended December 31, 2018 2 Revenues: 3 Sales revenue Dividend revenue Total revenue 6 Expenses and losses: Cost of goods sold $ 688,800 17,000 705,800 $ 391,400 151,100 17,500 45,300 27,900 16,800 8,600 Salary and wage expense 9. 8 Depreciation expense 10 Other operating expense 11 Interest expense Income tax expense Loss on sale of investments 12 13 14 Total expenses and losses 658,600 $ 47,200 15 Net income 16