Eastern Corp ​
Additional Information ​
(1) Equipment with a Cost Of

question 104

Essay

Eastern Corp.
Use the following selected data and additional information from the records of Eastern Corp.to answer the questions that follow.
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$\begin{array}{lrr}\text { Bal ance Sheet Data } & \underline{\mathbf{2 0 1 8}} & \underline{\mathbf{2 0 1 7}} \\\hline \text { Accounts receivable } & \$ 36,000 & \$ 42,000 \\\text { Inventories } & 28,000 & 25,000 \\\text { Accounts payable } & 31,000 & 35,000 \\\text { Salaries payable } & 2,000 & 1,000 \\\text { Equipment } & 60,000 & 40,000 \\\text { Accumulated depreciation } & 12,000 & 16,000 \\\text { Bonds payable } & 50,000 & 100,000 \\\text { Common stock } & 150,000 & 100,000 \\\text { Retained eamings } & 38,000 & 20,000\end{array}$ ​
Additional information:
$\begin{array}{lr}\text { Income Statement Data } & \mathbf{2 0 1 8} \\\hline \text { Net sales } & \$ 420,000 \\\text { Cost of goods sold } & 300,000 \\\text { Operating expenses (excluding depreciation expense) } & 84,000 \\\text { Net income } & 30,000 \\\text { Gain on sale of equipment (included in net income above) } & 2,000\end{array}$ ​
(1) Equipment with a cost of $\$ 15,000$ and a book value of $\$ 3,000$ was sold for $\$ 5,000$ during 2018 .
(2) Common stock was issued to retire bonds payable during 2018 .
(3) The only items affecting retained eamings in 2018 were net income and dividends declared and paid. ​
-Review the data for Eastern Corp.
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Required
Prepare the Operating Activities section of a statement of cash flows for Eastern Corp.for 2018 if the indirect method is used to determine net cash flow from operating activities.

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Definitions:

Industrial Unions Federation

An organization that represents a coalition of unions from various sectors within the industrial segment, aiming to promote collective bargaining and workers' rights.

Inclusive Model

A framework that aims to integrate various stakeholders and perspectives within a decision-making process or organization.

Revolutionary Unionism

A form of unionism that seeks to unite all workers to fundamentally change societal structures, prioritizing social change over contract negotiation.

Worker Solidarity

The sense of unity and mutual support among workers, often in the context of a shared struggle or labor movement.