Diamond Corp. has provided the following information for the year ended December 31, 2018. Diamond Corp Comparative Balance Sheet December 31, 2018 and 2017 Increase 2018 2017 (Decrease) $33,000 29,000 56,000 126,000 $244,000 $13,000 36,000 29,000 92.000 $170,000 $20,000 (7,000) 27,000 34.000 $74.000 Cash Accounts Receivable Merchandise Inventory Plant Assets, net Total Assets Accounts Payable $9,000 7,000 70,000 86.000 $13,000 3,000 79,000 95.000 $(4,000) 4,000 (9,000) (9.000) Accrued Liabilities Long-term Notes Payable Total Liabilities Common Stock Retained Earnings Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity 52,000 37,000 (6,000 83,000 $74.000 55,000 115,000 (12.000) 158,000 $244.000 3,000 78,000 (6,000) 75,000 $170,000 Diamond Corp Income Statement Year ended December 31, 2018 $291,300 1,000 6.000 Sales Revenue Interest Revenue Gain on Sale of Plant Assets $298,300 Total Revenues and Gains Cost of Goods Sold Salaries and Wages Expense Depreciation Expense-Plant Assets Other Operating Expense Interest Expense Income Tax Expense Total Expenses 145,000 49,000 16,000 25,000 3,500 7.800 246,300 $52.000 Net Income Diamond Corp Income Statement Year ended December 31, 2018 $291,300 1,000 6.000 Sales Revenue Interest Revenue Gain on Sale of Plant Assets $298,300 Total Revenues and Gains Cost of Goods Sold 145,000 49,000 16,000 25,000 3,500 7,800 Salaries and Wages Expense Depreciation Expense-Plant Assets Other Operating Expense Interest Expense Income Tax Expense Total Expenses Net Income 246,300 $52.000 Additional information provided by the company includes the following: Equipment costing $60,000 was purchased for cash. Equipment with a net book value of $10,000 was sold for a gain of $6,000. During 2018, the company repaid $43,000 of long-term notes payable. During 2018, the company borrowed $34,000 on a new long-term note payable. Prepare the 2018 statement of cash flows, using the indirect method.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Diamond Corp. has provided the following information for the year ended December 31, 2018.
Diamond Corp
Comparative Balance Sheet
December 31, 2018 and 2017
Increase
2018
2017
(Decrease)
$33,000
29,000
56,000
126,000
$244,000
$13,000
36,000
29,000
92.000
$170,000
$20,000
(7,000)
27,000
34.000
$74.000
Cash
Accounts Receivable
Merchandise Inventory
Plant Assets, net
Total Assets
Accounts Payable
$9,000
7,000
70,000
86.000
$13,000
3,000
79,000
95.000
$(4,000)
4,000
(9,000)
(9.000)
Accrued Liabilities
Long-term Notes Payable
Total Liabilities
Common Stock
Retained Earnings
Treasury Stock
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
52,000
37,000
(6,000
83,000
$74.000
55,000
115,000
(12.000)
158,000
$244.000
3,000
78,000
(6,000)
75,000
$170,000
Diamond Corp
Income Statement
Year ended December 31, 2018
$291,300
1,000
6.000
Sales Revenue
Interest Revenue
Gain on Sale of Plant Assets
$298,300
Total Revenues and Gains
Cost of Goods Sold
Salaries and Wages Expense
Depreciation Expense-Plant Assets
Other Operating Expense
Interest Expense
Income Tax Expense
Total Expenses
145,000
49,000
16,000
25,000
3,500
7.800
246,300
$52.000
Net Income
Transcribed Image Text:Diamond Corp. has provided the following information for the year ended December 31, 2018. Diamond Corp Comparative Balance Sheet December 31, 2018 and 2017 Increase 2018 2017 (Decrease) $33,000 29,000 56,000 126,000 $244,000 $13,000 36,000 29,000 92.000 $170,000 $20,000 (7,000) 27,000 34.000 $74.000 Cash Accounts Receivable Merchandise Inventory Plant Assets, net Total Assets Accounts Payable $9,000 7,000 70,000 86.000 $13,000 3,000 79,000 95.000 $(4,000) 4,000 (9,000) (9.000) Accrued Liabilities Long-term Notes Payable Total Liabilities Common Stock Retained Earnings Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity 52,000 37,000 (6,000 83,000 $74.000 55,000 115,000 (12.000) 158,000 $244.000 3,000 78,000 (6,000) 75,000 $170,000 Diamond Corp Income Statement Year ended December 31, 2018 $291,300 1,000 6.000 Sales Revenue Interest Revenue Gain on Sale of Plant Assets $298,300 Total Revenues and Gains Cost of Goods Sold Salaries and Wages Expense Depreciation Expense-Plant Assets Other Operating Expense Interest Expense Income Tax Expense Total Expenses 145,000 49,000 16,000 25,000 3,500 7.800 246,300 $52.000 Net Income
Diamond Corp
Income Statement
Year ended December 31, 2018
$291,300
1,000
6.000
Sales Revenue
Interest Revenue
Gain on Sale of Plant Assets
$298,300
Total Revenues and Gains
Cost of Goods Sold
145,000
49,000
16,000
25,000
3,500
7,800
Salaries and Wages Expense
Depreciation Expense-Plant Assets
Other Operating Expense
Interest Expense
Income Tax Expense
Total Expenses
Net Income
246,300
$52.000
Additional information provided by the company includes the following:
Equipment costing $60,000 was purchased for cash.
Equipment with a net book value of $10,000 was sold for a gain of $6,000.
During 2018, the company repaid $43,000 of long-term notes payable.
During 2018, the company borrowed $34,000 on a new long-term note payable.
Prepare the 2018 statement of cash flows, using the indirect method.
Transcribed Image Text:Diamond Corp Income Statement Year ended December 31, 2018 $291,300 1,000 6.000 Sales Revenue Interest Revenue Gain on Sale of Plant Assets $298,300 Total Revenues and Gains Cost of Goods Sold 145,000 49,000 16,000 25,000 3,500 7,800 Salaries and Wages Expense Depreciation Expense-Plant Assets Other Operating Expense Interest Expense Income Tax Expense Total Expenses Net Income 246,300 $52.000 Additional information provided by the company includes the following: Equipment costing $60,000 was purchased for cash. Equipment with a net book value of $10,000 was sold for a gain of $6,000. During 2018, the company repaid $43,000 of long-term notes payable. During 2018, the company borrowed $34,000 on a new long-term note payable. Prepare the 2018 statement of cash flows, using the indirect method.
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