Balance sheet accounts for Planet Inc. contain the following amounts at the end of 2017 and 2018.

Planet Inc.
Balance Sheet
As at December 31
Assets	2018	2017
Currents Assets
Cash	$7,500	$5,000
Accounts Receivable	21,000	15,000
Prepaid Expenses	2,500	2,000
Merchandise Inventory	37,000	28,000
Total Current Assets	68,000	50,000
Noncurrent Assets
Equipment	196,000	175,000
Accumulated Depreciation	(41,000)	(32,000)
Total Noncurrent Assets	155.000	143,000
Total Assets	$223,000	$193,000
Liabilities
Current Labilities	$33,000	$33,000
Long-Term Liabilities	30,000	35,000
Total Liabilities	63,000	68,000
Stockholders’ Equity
Paid-In Capital
Preferred Stock	50,000	45,000
Common Stock	20,000	15,000
Additional Paid-In Capital	5,00	0
Total Paid-In Capital	75,000	60,000
Retained Earnings	85,000	65,000
Total Stockholders’ Equity	160,000	125,000
Total Liabilities and Stockholders’ Equity	$223,000	$193,000

Assume current liabilities include only items from operations (e.g. accounts payable, taxes payable). Long-term liabilities include items from financing (e.g. bonds and other long-term liabilities).

Note that the company did not sell any equipment and did not borrow any additional long-term liabilities throughout the year.

Prepare the statement of cash flows for 2018 using the indirect method. Assume no dividends were declared or paid in 2018.

Answer rating: 100% (QA)

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