Question

This is one problem, please do the statement of cashflow in both direct and indirect method

Dice Corp's balance sheet as of December 31, 2018 and 2017 is presented below. Please prepare the changes in assets and liabilities December 31 2018 2017 195,000 Current investments Accounts receivable Allowance for doubtful accounts Note A Note B 360,000 50,000 600,000 20,000 300,000 1,000,000 450,000 100,000 15,000 215,000 1,730,000 Prepaid expenses Note C Note D Plant assets Note E Total assets 720,000 10,000 Accounts payable Interest payable Accraed expenses payable Income tax payable Current debt Common stock, $10 par Additional paid in capital Retained eamings Total liabilities and equity 825,000 15,000 Note F Note G 325,000 700,000 250,000 170,000 2,180,000 Note H 3,225,000 Note A Treasury bills of $300,000 were acquired for cash on December 31, 2018 and mature on 6/302019 Note B During 2018, Dice Corp wrote off $40,000 of bad debt that was previously incloded in its allowance for bad debt. Note C An investment (with a carrying value of $100,000) was sold for $135,000 during 2018. The value of marketable securities increased by $15,000 Note D Equipment costing $400,000 (carrying value of $140,000) was sold on January 1, 2018 for $150,000 cash. Note E Goodwill for the amount of $10,000 was considered impaired. Note F Dice Corp received a $325,000 loan advance toward its working capital requirements. Note G 10,000 shares of common stock were issaed in Year 6 for $22 a share. Note H Cash dividends of $240,000 were declared and paid by Dice in 2018.

Answer 1

Step 1

Statement of changes in the Assets and Liabilities

Assets	As on December 31, 2018	As on December 31 2017	Change
Cash	195,000	190,000	5,000
Current Investments	300,000	0	300,000
Accounts Receivables	540,000	560,000	- 20,000
Allowance for Doubtful Accounts	(-)60,000	(-)50,000	(-)10,000
Inventory	680,000	600,000	80,000
Prepaid Expenses	15,000	20,000	(-)5,000
Investments	215,000	300,000	(-)85,000
Plant Assets	1,730,000	1000,000	730,000
Accumulated Depreciation	(-)480,000	(-)450,000	(-)30,000
Goodwill	90,000	100,000	(-)10,000
Total Assets	3,225,000	2,180,000	1,045,000
Liabilities and Equity
Accounts Payable	825,000	720,000	105,000
Interest payable	15,000	10,000	5,000
Accrued Expenses Payable	250,000	300,000	(-)50,000
Income Tax Payable	20,000	30,000	(-)10,000
Current Debt	325,000	0	325,000
Common Stock $10 per	800,000	700,000	100,000
Additional Paid in equity	370,000	250,000	120,000
Retained earning	620,000	170,000	450,000
Total Liabilities	3,225,000	2,180,000	1,045,000