ch 13 assignment 2

Financial statement information for Oakley Company for 2018 is as follows: Sales 297,500 Cost of Goods Sold 99,460 Gross Profit 198,040 Operating Expenses: Depreciation 49,700 Salaries 9,500 Miscellaneous 5,170 Total Operating Expenses 64,370 Operating Income 133,670 Other Revenues/Gains: Gain on Sale of Plant Assets 8,750 Other Expenses/Losses: Interest Expense 2,940 5,810 Income Before Taxes 139,480 Income Tax Expense 7,270 Net Income 132,210 2018 2017 Assets Cash 82,700 47,250 Accounts Receivable 90,800 57,000 Merchandise Inventory 126,900 102,650 Investments 84,500 87,000 Plant Assets 255,000 205,000 Accumulated Depreciation (49,500) (40,000) Total 590,400 458,900 Liabilities and Stockholders' Equity Accounts Payable 57,700 48,280 Salaries Payable 12,100 18,830 Bonds Payable 100,000 70,000 Common Stock 250,000 200,000 Retained Earnings 170,600 121,790 Total 590,400 458,900 Additional Information: 1. Plant assets costing $97,000 were purchased for cash during the year. 2. Investments costing $2,500 were sold for $2,500 cash. 3. Plant assets costing $47,000 (accumulated depreciation $40,200) were sold for $15,550 cash. 4. A cash dividend of $83,400 was declared and paid during the year. 5. Common stock with a par value of $50,000 was issued at par for cash. 6. Bonds with a face value of $30,000 were issued at face value for cash. Instructions: Complete a set of cash flow T-accounts using the direct method of computing cash flow from operations.