5. The comparative balance sheet for 2018 and 2017 for Samuel Corporation as well as additional

information concerning transactions and events during 2018 are presented below:

Samuel Corporation

Balance Sheet

December 31, 2018 and 2017

2018 2017

Cash $ 35,900 $ 10,200

Accounts receivable (net) 48,300 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)

$318,000 $212,500

Accounts payable $ 19,000 $ 26,500

Accrued liabilities 19,000 17,000

Long-term notes payable 70,000 50,000

Common stock 130,000 90,000

Retained earnings 80,000 29,000

$318,000 $212,500

Additional data:

(a) Net income for the year 2018, $90,000.

(b) Depreciation on plant assets for the year, $12,700.

(c) Sold the long-term investments for $33,000.

(d) Paid dividends of $39,000.

(e) Purchased machinery costing $26,500, paid cash.

(f) Purchased machinery and gave a $60,000 long-term note payable.

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

Required:

Using the indirect method, prepare a statement of cash flows for 2018 for Samuel Corporation.