5/18/2017 Homework Statement of Cash Flows Edmonds: Fundamental Financial Accounting Concepts, 9e: ACCT 201 Principles of Accounting l Spring 2017 1 Homework Statement of Cash Flows 1. 5.00 points The comparative balance sheets and an income statement for Raceway Corporation follow Balance Sheets As of December 31 2017 2016 Cash 77,761 38,370 Accounts receivable 30,273 22,200 Merchandise inventory 158,456 74,300 Prepaid rent 2,410 4,820 Equipment 252,410 287,500 Accumulated depreciation (140,170 230,880 Land 188,500 75,000 Total assets 569,640 371,310 Liabilities Accounts payable (inventory) 62,257 70,620 Salaries payable 29,878 25,610 Stockholders' equity Common stock, $50 par value 246,500 200,500 231,005 Retained earnings 74,580 Total liabilities and equity 569,640 371,310 Income Statement For the Year Ended December 31, 2017 Sales $1,503,000 Cost of goods sold (798,795) Gross profit 704,205 Operating expenses Depreciation expense 22.080 (20,040) Rent expense 250,570 Salaries expense Other operating expenses (255,090) Net income 156,425 Other Information 1. Purchased land for $113,500. 2. Purchased new equipment for $96,800. 3. Sold old equipment that cost $131,890 with accumulated depreciation of $112,790 for $19,100 cash. 4. Issued common stock for $46,000. Required Prepare the statement of cash flows for 2017 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)