Question
2. The Fancy Company's comparative balance sheets for 2016 and 2017, and additional information, are presented below. Fancy Company Comparative Balance Sheets December 31, December
2. The Fancy Company's comparative balance sheets for 2016 and 2017, and additional information, are presented below.
Fancy Company
Comparative Balance Sheets
December 31, December 31,
2017 2016
ASSETS
Cash $ 14,000 $ 9,000
Accounts receivable 52,000 24,000
Inventory 87,000 40,000
Equipment 125,000 100,000
Accumulated depreciation (42,000) (34,000)
Prepaid expenses 4,000 2,000
Land -0- 7,000
Building 50,000 -0-
Total Assets $290,000 $148,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $ 25,000 $ 14,000
Interest payable 8,000 6,000
Taxes payable 37,000 11,000
Short-term note payable 37,000 32,000
Bonds payable 75,000 50,000
Common stock, $10 par 75,000 25,000
Retained earnings 33,000 10,000
Total Liabilities and Shareholders Equity $290,000 $148,000
Additional 2017 information:
Net income, $31,000
Sold land for gain of $3,000
Paid dividends of $8,000
Issued $50,000 common stock to purchase building
Required:
Prepare Fancy Company's 2017 statement of cash flows (using the indirect method for operating activities) .
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