Question
A comparative balance sheet for Chain Company appears below: Chain COMPANY Comparative Balance Sheet Dec. 31, 2017 Dec. 31, 2016 Assets Cash $ 34,000 $11,000
A comparative balance sheet for Chain Company appears below: Chain COMPANY Comparative Balance Sheet Dec. 31, 2017 Dec. 31, 2016 Assets Cash $ 34,000 $11,000 Accounts receivable 18,000 13,000 Inventory 25,000 17,000 Prepaid expenses 6,000 9,000 Long-term investments -0- 17,000 Equipment 60,000 33,000 Accumulated depreciationequipment (20,000) (15,000) Total assets $123,000 $85,000
Liabilities and Stockholders' Equity Accounts payable $ 17,000 $ 7,000 Bonds payable 36,000 45,000 Common stock 40,000 23,000 Retained earnings 30,000 10,000 Total liabilities and stockholders' equity $123,000 $85,000
Additional information: 1. Net income for the year ending December 31, 2017 was $35,000. 2. Cash dividends of $15,000 were declared and paid during the year. 3. Long-term investments that had a cost of $17,000 were sold for $14,000. 4. Sales for 2017 were $120,000.
Instructions Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method.
Bonus 20pts The financial statements of Sears Company
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started