2. value: 10.00 points Union Brake Inc.'s comparative balance sheet information at December 31, 2017 and 2016, and its income statement for the year ended December 31, 2017, are as follows: Union Brake Inc. Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold $884,000 574,000 $310,000 Gross profit Operating expenses Depreciation expense Operating Profit Loss on sale of equipment Investment income $132,700 41,260 173,960 136,040 10,460 17,520 Profit before taxes Income taxes Profit 143,100 30,000 113,100 Union Brake Inc. Balance Sheet Information December 31 2017 2016 Cash $ 46,000 $ 24,560 Cash equivalents 23,280 9,200 Accounts receivable 87,920 35.440 Inventory 113,840 81,520 Investment 23,280 Land 76,400 76,400 Building and equipment 428,660 446,180 Accumulated depreciation 116,080 94,960 Accounts payable 13,700 37,400 Dividends payable 1,200 800 Bonds payable 22,000 Preferred shares 81,200 81,200 Common shares 405,680 405.680 Retained earnings 136,240 76,540 Net Change S 21,440 14,080 52,480 32,320 (23,280) (17,520) 21,120 (23,700) 400 22,000 59,700 During 2017, the following transactions occurred: 1. Purchased equipment for $20,400 cash. 2. Sold the long-term investment on January 1, 2017 for $40,800, resulting in investment income of 17,520. 3. Sold equipment for $7,320 cash that had originally cost $37,920 and had $20,140 of accumulated depreciation. 4. Issued $22,000 of bonds payable at face value. Required: 1. How much cash was paid in dividends? Dividends paid Union Brake Inc. Balance Sheet Information December 31 2017 2016 Cash $ 46,000 $ 24,560 Cash equivalents 23,280 9,200 Accounts receivable 87,920 35.440 Inventory 113,840 81,520 Investment 23,280 Land 76,400 76,400 Building and equipment 428,660 446,180 Accumulated depreciation 116,080 94,960 Accounts payable 13,700 37,400 Dividends payable 1,200 800 Bonds payable 22,000 Preferred shares 81,200 81,200 Common shares 405,680 405.680 Retained earnings 136,240 76,540 Net Change S 21,440 14,080 52,480 32,320 (23,280) (17,520) 21,120 (23,700) 400 22,000 59,700 During 2017, the following transactions occurred: 1. Purchased equipment for $20,400 cash. 2. Sold the long-term investment on January 1, 2017 for $40,800, resulting in investment income of 17,520. 3. Sold equipment for $7,320 cash that had originally cost $37,920 and had $20,140 of accumulated depreciation. 4. Issued $22,000 of bonds payable at face value. Required: 1. How much cash was paid in dividends? Dividends paid 2. Prepare a statement of cash flows for Union Brake for the year ended December 31, 2017, using the indirect method. (List any deduction in cash and cash outflows as negative amounts.) UNION BRAKE INC. Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities: Adjustments to reconcile profit to net cash inflows from operating activities: Cash flows from investing activities: Cash flows from financing activities
