3.) Prepare a Statement of Cash Flows using the indirect method.

The balance sheets for Kinder Company showed the following information. Additional information concerning transactions and events during 2018 are presented below.

Kinder Company

Balance Sheet

December 31

2018 2017

Cash $ 35,900 $ 10,200

Accounts receivable (net) 38,300 20,300

Inventory 35,000 42,000

Long-term investments 0 15,000

Property, plant & equipment 236,500 150,000

Accumulated depreciation (37,700) (25,000)

$308,000 $212,500

Accounts payable $ 17,000 $ 26,500

Accrued liabilities 21,000 17,000

Long-term notes payable 70,000 50,000

Common stock 130,000 90,000

Retained earnings 70,000 29,000

$308,000 $212,500

Additional data:

1. Net income for the year 2018, $71,000.

2. Depreciation on plant assets for the year, $12,700.

3. Sold the long-term investments for $28,000 (assume gain or loss is ordinary).

4. Paid dividends of $30,000.

5. Purchased machinery costing $21,500, paid cash.

6. Purchased machinery and gave a $60,000 long-term note payable.

7. Paid a $40,000 long-term note payable by issuing common stock.