In: Accounting
Here are comparative balance sheets for Velo Company.
VELO COMPANY |
||||||
Assets |
2017 |
2016 |
||||
Cash |
$ 72,800 |
$ 33,300 |
||||
Accounts receivable |
86,400 |
71,300 |
||||
Inventory |
170,200 |
186,700 |
||||
Land |
72,800 |
101,600 |
||||
Equipment |
260,000 |
200,000 |
||||
Accumulated depreciation—equipment |
(66,500 |
) |
(33,800 |
) |
||
Total |
$595,700 |
$559,100 |
||||
Liabilities and Stockholders’ Equity |
||||||
Accounts payable |
$ 35,000 |
$ 47,200 |
||||
Bonds payable |
150,800 |
203,600 |
||||
Common stock ($1 par) |
215,200 |
173,000 |
||||
Retained earnings |
194,700 |
135,300 |
||||
Total |
$595,700 |
$559,100 |
Additional information:
1. | Net income for 2017 was $102,000. | |
2. | Cash dividends of $42,600 were declared and paid. | |
3. | Bonds payable amounting to $52,800 were redeemed for cash $52,800. | |
4. | Common stock was issued for $42,200 cash. | |
5. | No equipment was sold during 2017, but land was sold at cost. |
Prepare a statement of cash flows for 2017 using the indirect
method.