CHAPMAN COMPANY Comparative Statement of Financial Position As of December 31 2016 2015 Assets Non-Current Assets Long-term Investment Investment in held-to-maturity 55,000 85,000 Property, Plant, and Equipment Land 40,000 25,000 Buildings 145,000 145,000 Less: Accumulated Depreciation - Buildings (37,000) (28,000) Equipment 70,000 48,000 Less: Accumulated Depreciation - Equipment (21,000) (14,000) Total Non-Current Assets 252,000 261,000 Current Assets Merchandise Inventory 75,000 61,000 Account Receivable 155,000 130,000 Less: Allowance for Doubtful Accounts (10,000) (8,000) Cash 70,000 51,000 Total Current Assets 290,000 234,000 Total Assets 542,000 495,000 Equity and Liabilities Equity Share Capital - Ordinary 385,000 310,000 Less: Treasury Share (75,000) (50,000) Retained Earnings 92,000 95,000 Total Equity 402,000 355,000 Non-Current liabilities Long-terms Note Payable 62,000 70,000 Current liabilities Income Taxes payable 12,000 10,000 Account Payable 66,000 60,000 Total liabilities 140,000 140,000 Total Equity and Liabilities 542,000 495,000 CHAPMAN COMPANY Income Statement For The year Ended December 31, 2016 Sales Revenue Sales 621,000 Less: Sales discounts 150,000 Sales returns and allowances 50,000 (200,000) Net Sales Revenues 421,000 Cost Of Goods Sold 300,000 Gross Profit 121,000 Operating Expense Selling Expense Postage Expense 10,000 Travel and entertainment 50,000 Advertising Expenses 67,000 Telephone and Internet expense 25,000 152,000 Administrative Expense Legal service 70,000 Miscellaneous office expense 5,000 Utilities expense 5,000 Depreciation Expense 16,000 Bad debt Expense 2,000 98,000 Income from operations (250,000) Other Income and Expense Gain on sale of investments 15,000 Loss on sale of equipment (3,000) Dividend Revenue 50,000 Interest Revenue 4,000 66,000 Income before income tax (63,000) Income tax 45,000 Net loss for the year (108,000) Additional data: 1. There were no write-offs of uncollectible accounts during the year. 2. Ordinary shares were issued in exchange for land. 3. Cash dividends were declared and paid during the year. 4. Equity investment that cost $35.000 were sold during the year. 5. Equipment that cost $10.000 and was 60% depreciated was sold in 2016. Instructions: a. Prepare a statement of cash flows using the indirect method. b. Compute net cash provided by operating activities under the direct method

Additional data: 1. There were no write-offs of uncollectible accounts during the year. 2. Ordinary shares were issued in exchange for land. 3. Cash dividends were declared and paid during the year. 4. Equity investment that cost $35.000 were sold during the year. 5. Equipment that cost $10.000 and was 60% depreciated was sold in 2016 . Instructions: a. Prepare a statement of cash flows using the indirect method. b. Compute net cash provided by operating activities under the direct method. Equity and Liabilities Equity Share Capital - Ordinary Less: Treasury Share Retained Earnings Total Equity Non-Current liabilities Long-terms Note Payable Current liabilities Income Taxes payable Account Payable Total liabilities Total Equity and Liabilities 62,00070,000 CHAPMAN COMPANY Income Statement For The year Ended December 31, 2016 CHAPMAN COMPANY Comparative Statement of Financial Position As of December 31 Additional data: 1. There were no write-offs of uncollectible accounts during the year. 2. Ordinary shares were issued in exchange for land. 3. Cash dividends were declared and paid during the year. 4. Equity investment that cost $35.000 were sold during the year. 5. Equipment that cost $10.000 and was 60% depreciated was sold in 2016 . Instructions: a. Prepare a statement of cash flows using the indirect method. b. Compute net cash provided by operating activities under the direct method. Equity and Liabilities Equity Share Capital - Ordinary Less: Treasury Share Retained Earnings Total Equity Non-Current liabilities Long-terms Note Payable Current liabilities Income Taxes payable Account Payable Total liabilities Total Equity and Liabilities 62,00070,000 CHAPMAN COMPANY Income Statement For The year Ended December 31, 2016 CHAPMAN COMPANY Comparative Statement of Financial Position As of December 31