Question
A comparative balance sheet for Heathcote Company appears below: HEATHCOTE COMPANY Comparative Balance Sheet Dec. 31, 2017 Dec. 31, 2016 Assets Cash $ 29,000
A comparative balance sheet for Heathcote Company appears below: HEATHCOTE COMPANY Comparative Balance Sheet Dec. 31, 2017 Dec. 31, 2016 Assets Cash $ 29,000 $11,000 Accounts receivable 18,000 13,000 Inventory Prepaid expenses Long-term investments 25,000 17,000 6,000 9,000 -0- 11,000 Equipment 60,000 33,000 Accumulated depreciation-equipment (20,000) (15,000) Total assets $118,000 $79,000 Liabilities and Stockholders' Equity Accounts payable $ 17,000 $ 7,000 Bonds payable 36,000 39,000 Common stock 40,000 23,000 Retained earnings 25,000 10,000 Total liabilities and stockholders' equity $118,000 $79.000 Additional information: 1. Net income for the year ending December 31, 2017 was $25,000. 2. Cash dividends of $10,000 were declared and paid during the year. 3. Long-term investments that had a cost of $11,000 were sold for $14,000. 4. Sales for 2017 were $320,000. Instructions Using excel, prepare a statement of cash flows, in good form, for the year ended December 31, 2017, using the indirect method (25 points). Please show all work (e.g., calculations of changes in comparative balance sheet accounts) used to prepare/support the statement.
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