Volkswagen uses the direct method to prepare its statement of cash flows.

Volkswagen provided the comparative data and ad

31-Dec 2017 2018 Changes

Cash 300,000 200,000 -100000
Accounts Receivable, net 840,000 580,000 -260000
Inventory 660,000 420,000 -240000
Prepaid expenses 100,000 50,000 -50000
Long term investment 80,000 0 -80000
Property, plant and equipment 1,130,000 600,000 -530000
Accumulated Depreciation 110,000 50,000 -60000
Accounts payable 530,000 440,000 -90000
Accrued expense 140,000 130,000 -10000
Dividends payable 70,000 0 -70000
Note payable- long term debt 500,000 0 -500000
Share capital 1,200,000 900,000 -300000
Retained earnings 560,000 330,000 -230000
Net credit sales 6,400,000 4,000,000 -2400000
Cost of goods sold 5,000,000 3,200,000 -1800000
Expenses 1,000,000 520,000 -480000
Net income 400,000 280,000 -120000

All accounts receivable and accounts payable relates to trade merchandise. Accounts payable are recorded net at the end of 2
No receivable were charged against the allowance during 2017. The proceeds from the note payable were used to finance a n
ded the comparative data and additional information:

are recorded net at the end of 2017 was the same as at the end of 2016.
payable were used to finance a new store building. Share capital was sold to provide additional working capital.