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In: Accounting

Lock & Key Inc. began operations on January 1, 2016. Its post-closing trial balance at December...

Lock & Key Inc. began operations on January 1, 2016. Its post-closing trial balance at December 31, 2016 and 2017, is shown below along with some other information.

Lock & Key Inc.
Income Statement
For Year Ended December 31, 2017
(000s)
  Revenues:
     Sales $ 3,360
     Cost of goods sold 2,760
  Gross Profit 600
  Expenses:
     Other expenses $ 600
     Depreciation expense 240
    
     Total expenses 840
   Loss $ 240
Lock & Key Inc.
Post-Closing Trial Balance
(000s)
December 31
  Account 2017 2016
  Cash $ 2,760 $ 1,320
  Receivables 2,150 1,500
  Merchandise inventory 2,100 2,430
  Property, plant and equipment 3,780 4,020
  Accumulated depreciation 1,500 1,440
  Accounts payable 1,500 1,140
  Accrued liabilities 240 360
  Bonds payable 2,210 2,400
  Common shares 3,144 1,410
  Retained earnings 2,196 2,520

Other information regarding Lock & Key Inc. and its activities during 2017:
1. Assume all accounts have normal balances.
2. Cash dividends were declared and paid during the year.
3. Equipment was sold for cash equal to its book value.


Required:
Using the information provided, prepare a statement of cash flows (applying the indirect method) for the year ended December 31, 2017. ((List any deduction in cash and cash outflows and loss as negative amounts. Enter amounts in thousands, not in dollar.)

LOCK & KEY INC.
Statement of Cash Flows
For Year Ended December 31, 2017
(000s)
Cash flows from operating activities:
Adjustments to reconcile profit to net cash inflows from operating activities:
$0
Cash flows from investing activities:
0
Cash flows from financing activities:
0
$0

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Expert Solution

ekkarill92 answered 11 months ago
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