8,000 A B D E F G H I J K 1 Required: 2 Prepare a cash flow statement, in good form, using the indicrect method for operating activities. 3 4 Orion Company's comparative balances sheets for 2016 and 2017 are presented below. The income statement of Orion Company for the year ended December 31, 2017 is as follows: 5 Orion Company Orion Company 6 Balance Sheets Income Statement for the Year Ended December 31, 2017 7 December 31 Increase 8 2017 2016 (Decrease) 9 Assets Sales 1,600,000 10 Cash 337,000 246,000 91,000 Gain on sale of marketable securities 2,000 11 Accounts receivable, net 420,000 280,000 140,000 Gain on extinguishment of debt 44,000 12 Marketable securities 15,000 0 15,000 Total revenue and gains 1,646,000 13 Inventories 520,000 440,000 80,000 Expenses 14 Land 650,000 400,000 250,000 Cost of goods sold 720,000 15 Plant and equipment 1,160,000 1,266,000 (106,000) Personnel costs 386,000 16 Less: Accumulated depreciation (180,000) (200,000) 20,000 Depreciation 40,000 17 Total assets 2,922,000 2,432,000 490,000 Loss on sale of equipment 18 Liabilities and Stockholders' Equity Interest 32,000 19 Liabilities Miscellaneous 16,000 20 Accounts payable 660,000 500,000 160,000 Total expenses 1,202,000 21 Accrued wages 540,000 520,000 20,000 Income before income taxes 444,000 22 Long-term bonds (due 7/1/2023) 260,000 360,000 (100,000) Income tax expense 200,000 23 Total liabilities 1,460,000 1,380,000 80,000 Net income 244,000 24 Stockholders' equity: 25 Common stock and APIC 966,000 760,000 206,000 26 Retained earnings 496,000 292,000 204,000 27 Total stockholders' equity 1,462,000 1,052,000 410,000 28 Total liabilities and stockholders' equity 2,922,000 2,432,000 490,000 29 30 Other information 31 1. On Jan 11, 2017, Orion purchased land for $170,000 cash 32 2. On Jan 23, 2017, Orion extinguished long-term bonds with a face value of $100,000 33 3. On Feb 8, 2017, Orion issued 8,400 shares of common stock for cash. The stock was issued at $15 per share. 34 4. Orion purchased marketable securities for $30,000 on Mar 15, 2017; one-half of the securities were later sold on Dec 3, 2017 35 5. On June 9, 2017, Orion issued 7,600 shares of common stock for land. The common stock and land had current market values of $80,000 at the time of the transaction 36 6. On July 1, 2017, Orion declared and paid a $40,000 cash dividend 37 7. On Oct 18, 2017, Orion sold equipment costing $106,000, with a bookd value of $46,000, for $38,000 cash 38 8,000 A B D E F G H I J K 1 Required: 2 Prepare a cash flow statement, in good form, using the indicrect method for operating activities. 3 4 Orion Company's comparative balances sheets for 2016 and 2017 are presented below. The income statement of Orion Company for the year ended December 31, 2017 is as follows: 5 Orion Company Orion Company 6 Balance Sheets Income Statement for the Year Ended December 31, 2017 7 December 31 Increase 8 2017 2016 (Decrease) 9 Assets Sales 1,600,000 10 Cash 337,000 246,000 91,000 Gain on sale of marketable securities 2,000 11 Accounts receivable, net 420,000 280,000 140,000 Gain on extinguishment of debt 44,000 12 Marketable securities 15,000 0 15,000 Total revenue and gains 1,646,000 13 Inventories 520,000 440,000 80,000 Expenses 14 Land 650,000 400,000 250,000 Cost of goods sold 720,000 15 Plant and equipment 1,160,000 1,266,000 (106,000) Personnel costs 386,000 16 Less: Accumulated depreciation (180,000) (200,000) 20,000 Depreciation 40,000 17 Total assets 2,922,000 2,432,000 490,000 Loss on sale of equipment 18 Liabilities and Stockholders' Equity Interest 32,000 19 Liabilities Miscellaneous 16,000 20 Accounts payable 660,000 500,000 160,000 Total expenses 1,202,000 21 Accrued wages 540,000 520,000 20,000 Income before income taxes 444,000 22 Long-term bonds (due 7/1/2023) 260,000 360,000 (100,000) Income tax expense 200,000 23 Total liabilities 1,460,000 1,380,000 80,000 Net income 244,000 24 Stockholders' equity: 25 Common stock and APIC 966,000 760,000 206,000 26 Retained earnings 496,000 292,000 204,000 27 Total stockholders' equity 1,462,000 1,052,000 410,000 28 Total liabilities and stockholders' equity 2,922,000 2,432,000 490,000 29 30 Other information 31 1. On Jan 11, 2017, Orion purchased land for $170,000 cash 32 2. On Jan 23, 2017, Orion extinguished long-term bonds with a face value of $100,000 33 3. On Feb 8, 2017, Orion issued 8,400 shares of common stock for cash. The stock was issued at $15 per share. 34 4. Orion purchased marketable securities for $30,000 on Mar 15, 2017; one-half of the securities were later sold on Dec 3, 2017 35 5. On June 9, 2017, Orion issued 7,600 shares of common stock for land. The common stock and land had current market values of $80,000 at the time of the transaction 36 6. On July 1, 2017, Orion declared and paid a $40,000 cash dividend 37 7. On Oct 18, 2017, Orion sold equipment costing $106,000, with a bookd value of $46,000, for $38,000 cash 38