Question

Prepare a statement of cash flows using the indirect method (Please show all calculations) ***Theres no dividend info included in question****

		2017	2016
Assets:
Cash		200,000	80,000
Accounts receivable, net		87,000	65,000
Inventory		55,000	50,000
Prepaid expenses		12,000	20,000
Property, plant & equipment		700,000	500,000
Accumulated depreciation		(100,000)	(60,000)
Total Assets		954,000	655,000
Liabilities & Equity
Accounts payable		37,000	25,000
Accrued liabilities		26,000	20,000
Taxes payable		15,000	5,000
Long-term Notes Payable		110,000	50,000
Common stock		100,000	100,000
Additional paid in capital		285,000	260,000
Retained earnings		381,000	195,000
Total liabilities and equity		954,000	655,000
Sales		1,200,000
Cost of goods sold		650,000
Gross profit		550,000
Operating expenses		180,000
Pre-tax income		370,000
Income taxes		74,000
Net income		296,000

a. Stock option expense of $25,000 was recognized in 2017
b. Equipment of $200,000 was purchased using $60,000 note payable and cash

Answer 1