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

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

Requirements

1. Prepare the statement of cash flows of Ronklin 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 Ronklin 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 Beginning bal Sale of long-term investment 34,900 Payments on accounts payable 387,000 18,700 Payments of dividends 661,900 Payments of salaries and wages 37,900 Payments of interest 17,000 Purchase of equipment Payments of other operating expenses Payment of long-term note payable Purchase of treasury stock 27,000 Collections from customers 143,100 Issuance of common stock 23,100 Receipts of dividends 31,500 34,700 41,500 21,200 Payment of income tax 18,400 42,900 | Ending Bal Common Stock Beginning bal Issuance for cash Issuance to acquire land Issuance to retire note payable 89,100 37,900 53,000 15,000 Ending bal 195,000 A1 Ronklin Electric Company Income Statement Year Ended December 31, 2018 1 2 Revenues: Sales revenue Dividend revenue Total revenue 6 Expenses and losses: Cost of goods sold Salary and wage expense $ 643,900 17,000 660,900 4 $ 390,500 135,300 19,400 45,200 20,900 15,800 20,300 Depreciation expense 10 9. Other operating expense 11 Interest expense 12 Income tax expense 13 Loss on sale of investments Total expenses and losses 647,400 $ 13,500 14 15 Net income 16