ASSIGNMENT-5 (CASH FLOW STATEMENT) READ INSTURCTIONS CAREFULLY 2018 8.000 Question 1 The following is the comparative balance sheet of Y Corporation at of December 31, are as Assets 2017 2018 Liabilities 2017 Cash & equivalents 5.000 3,000 Accounts payable 5.000 A/C Receivables 15,000 22.000 Notes payable 20,000 Merchandise inventory 12,000 15.000 Accrued wares 2.000 Fixed Assets 50,000 55,000 Accrued taxes 3.000 Other Assets 8.000 5,000 Long term debts Common stock 20.000 Retained earnings 40.000 Total 90,000 100,000 90.000 2.000 5.000 15.000 26,000 44.000 100,000 STATEMENT OF INCOME AND RETAINED EARNING FOR THE YEAR ENDED DECEMBER 31, 2018 Sales 48.000 Expenses: Cost of goods sold 25 000 Selling and general administrative expenses 5.000 Depreciation 5.000 Interest 2.000 (37.000 Net Income before tax 11.000 Less Income taxes 14.000 Add: Retained earnings at December 31, 2017 7,000 less Dividend 3,000 Retained earnings at December 31, 2018 44,000 Required. Prepare a cash flow statement using direct method for the year ended December 31, 2018