Question
As the accountant for Awesome Foods Incorporated, you are responsible for preparing the cash flow statement. You have decided to prepare the statement using the
As the accountant for Awesome Foods Incorporated, you are responsible for preparing the cash flow statement. You have decided to prepare the statement using the indirect method and have gathered the following data from the accounting records:
Principal payments on non-current debt$ 50,000
Collections on accounts receivable287,500
Increase in accounts payable25,300
Acquisition of equipment by issuing non-current note payable70,000
Depreciation expense71,500
Collection of loan principal58,000
Proceeds from sale of investments, not including $5,100 gain49,100
Increase in accounts receivable7,200
Cash payments to purchase capital assets62,000
Decrease in accrued liabilities30,600
Payment of cash dividends43,500
Income tax expense and payments39,300
Proceeds from sale of capital assets, not including $7,400 loss22,600
Net income143,100
Cash sales217,400
Proceeds from issuance of common shares300,000
Increase in inventory41,700
Loan to another company50,000
Bonds payable converted into common shares130,000
Payments to suppliers283,100
Decrease in prepaid expenses12,800
Cash balance: December 31, 201662,500
Cash balance: December 31, 2017462,200
Prepare the cash flow statement for the year ended December 31, 2017, using the indirect method.
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