07:58 ull 4G A Ims.uef.edu.vn UMA COMPANY Ex A Balance Sheets December 31, 2018 and 2017 2018 2017 Assets $ 43,050 $ 23,925 39.825 Cash Accounts receivable 34.125 Inventory Prepaid expenses 156,000 146.475 3,600 1,650 Total current assets 236,775 211.875 135,825 (61.950) $310,650 146,700 (47.550) Equipment Accum. depreciation-Equipment Total assets $311.025 Liabilities $ 28.800 5,100 $ 33,750 4,425 Accounts payable Income taxes payable Dividends payable Total current liabilities. Bonds payable. 4,500 33,900 42,675 37.500 Total liabilities 33,900 80,175 Equity Common stock, $10 par Retained earnings Total liabilities and equity 168.750 168,750 108,000 $310,650 62.100 $311.025 Ex 4: UMA COMPANY Income Statement For Year Ended December 31, 2018 Sales $446,100 Cost of goods sold. $222,300 Other operating expenses 120,300 Depreciation expense 25,500 (368,100) 78,00 Other gains (losses) Loss on sale of equipment .... Loss on retirement of bonds... 3,300 825 (4,125) 73,875 Income before taxes Income taxes expense (13,725) $ 60,150 Net income Ex 4: Additional Information 07:57 ull 4G AA A Ims.uef.edu.vn (13,725) $ 60,150 Income taxes expense Net income Ex 4: Additional Information a. Equipment costing $21,375 with accumulated depreciation of $11,100 is sold for cash. b. Equipment purchases arefor cash. c. Accumulated Depreciatior is affected by depreciation expense and the sale of equipment. d. The balance of Retained Eamings is affected by dividend declarations and net income. e. All sales are made on credit. f. All inventory purchases are on credit. g. Accounts Payable balances result from inventory purchases. h. Prepaid expenses relate to "other operating expenses." Ex 4: Required 1. Prepare a statement of cash flows using the indirect method for year 2018. 2. Prepare a statement of cash flows using the direct method for year 2018. PLANNING THE SOLUTION •Prepare two blank statements of cash flows with sections for operating, investing, and financing activities using the (1) indirect method format and (2).