Question

Bramble Corp. reported the following information for 2017. Bramble Corp. Comparative Balance Sheets December 31 Assets 2017 2016 Change Increase/Decrease Cash $51,510 $36,090 $15,420 Increase Accounts receivable 61,380 21,880 39,500 Increase Inventory 44,120 –0– 44,120 Increase Prepaid expenses 5,950 3,970 1,980 Increase Land 55,190 69,510 14,320 Decrease Buildings 198,490 198,490 –0– Accumulated depreciation—buildings (20,790 ) (13,860 ) 6,930 Increase Equipment 182,860 68,310 114,550 Increase Accumulated depreciation—equipment (27,700 ) (10,080 ) 17,620 Increase Totals $551,010 $374,310 Liabilities and Stockholders’ Equity Accounts payable $42,990 $40,240 $2,750 Increase Accrued expenses payable 0 9,920 9,920 Decrease Bonds payable 99,940 150,380 50,440 Decrease Common stock ($1 par) 228,510 59,890 168,620 Increase Retained earnings 179,570 113,880 65,690 Increase Totals $551,010 $374,310 Bramble Corp. Income Statement For the Year Ended December 31, 2017 Sales revenue $932,850 Cost of goods sold $473,590 Operating expenses 229,760 Interest expense 11,940 Loss on disposal of equipment 1,990 717,280 Income before income taxes 215,570 Income tax expense 64,950 Net income $150,620 Additional information: 1. Operating expenses include depreciation expense of $40,320. 2. Land was sold at its book value for cash. 3. Cash dividends of $84,930 were declared and paid in 2017. 4. Equipment with a cost of $165,980 was purchased for cash. Equipment with a cost of $51,430 and a book value of $35,660 was sold for $33,670 cash. 5. Bonds of $50,440 were redeemed at their face value for cash. 6. Common stock ($1 par) of $168,620 was issued for cash. Use this information to prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answer 1