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Dependable Tires Company Uses the Indirect Method to Prepare the Statement

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Dependable Tires Company uses the indirect method to prepare the statement of cash flows.Refer to the following comparative balance sheet for Dependable Tires Company and complete the third column to show the increases or decreases.
Dependable lires Company Comparative Balance Sheet December 31,2018 and 201720182017 Increase/  Decrease  Cash $39,600$19,800 Accounts Receivable 26,40038,500 Merchandise Inventory 204,000126,500 Total Assets $270,000$184,800 Accounts Payable $4,800$6,600 Accrued Liabilities 2,4001,100 Long-term Notes Payable 100,80099,000 Total Liabilities 108,000106,700 Common Stock 36,0002,200 Retained Earnings 135,60081,400 Treasury Stock (9,600(5,500) Total Stockholders’ Equity 162,00078,100 Total Liabilities and Stockholders’  Equity $270,000$184,800\begin{array}{c}\text {Dependable lires Company }\\\text {Comparative Balance Sheet}\\\text { December 31,2018 and 2017}\\\\\begin{array}{|l|r|r|}\hline &2018 & 2017 & \text { Increase/ } \\&&&\text { Decrease }\\\hline \text { Cash } & \$ 39,600 & \$ 19,800 \\\hline \text { Accounts Receivable } & 26,400 & 38,500 \\\hline \text { Merchandise Inventory } & 204,000 & \underline{126,500} \\\hline \text { Total Assets } & \$ 270,000 & \$ 184,800 \\\hline\\\hline \text { Accounts Payable } & \$ 4,800 & \$ 6,600 \\\hline \text { Accrued Liabilities } & 2,400 & 1,100 \\\hline \text { Long-term Notes Payable } & \underline{100,800} & \underline{99,000} \\\hline \text { Total Liabilities } & 108,000 & 106,700 \\\hline\\\hline \text { Common Stock } & 36,000 & 2,200 \\\hline \text { Retained Earnings } & 135,600 & 81,400 \\\hline \text { Treasury Stock } & (9,600 & (5,500) \\\hline \text { Total Stockholders' Equity } & \underline{162,000} & \underline{78,100} \\\hline \text { Total Liabilities and Stockholders' } & & \\\text { Equity } & \$ 270,000 & \$ 184,800 \\\hline\end{array}\end{array}

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Definitions:

Privity Rule

A principle in contract law that states that contracts are private agreements between the parties who have entered into them, affecting no third parties.

Thing or Benefit

Refers to any item of value or advantage that is provided or promised in a transaction or agreement.

Unconscionable Contracts

Agreements that are so unfairly one-sided that they are deemed immoral or unjust and are therefore unenforceable under the law.

Unconscionability

A doctrine in contract law that describes terms that are so unjustly one-sided that they are considered shockingly unfair or oppressive.

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