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

Volkswagen provided the comparative data and add

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 20
No receivable were charged against the allowance during 2017. The proceeds from the note payable were used to finance a ne
 mparative data and additional information:

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