Reference no: EM132463718

The following information is related to Somerset Company's fiscal year 2018.

Income Statement:

Net Income                                $4,000,000

Depreciation Expense                       650,000

Gain on Sale of Plant Assets               50,000

Interest Expense                               5,000

Balance Sheet - 12/31/17: Increase (Decrease)

Accounts Receivable                     ($45,000)

Plant Assets - Purchased                250,000

Plant Assets - Disposals               (100,000)

Additional Information:

Point 1: Common Stock exchanged for outstanding Long Term Notes Payable of $150,000

Point 2: Dividends paid were $35,000

Question 1: Use this information to prepare a partial Statement of Cash Flows for Somerset Company. Prepare only the section related to Cash Flows from Operating Activities.