Chapter 16 Statement of Cash Flows 781 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2016 are as follows: a. Net income, $332,000 b. Depreciation reported on the income statement, $83,400 C. Equipment was purchased at a cost of $162,800 and fully depreciated equipment cost- ing $44,800 was discarded, with no salvage realized. d. The mortgage note payable was not due until 2018 but the terms permitted earlier payment without penalty. e. 10,000 shares of common stock were issued at $20 for cash. f. Cash dividends declared and paid, $153,600 Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. from operating activities ember 31, 2016 and OBJ. 2 w from PR 16-2A Statement of cash flows-indirect method The comparative balance sheet of Del Ray Enterprises Inc. at December 31, 20 2015, is as follows: vities, Dec 31, 2016 Dec 31, 2015 Assets Cash ...... Accounts receivable inet) ............. Merchandise inventory .... Prepaid expenses ...................... . Equipment.......... .... Accumulated depreciation equipment ................. Total assets. Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) .......... Mortgage note payable............ Common stock, $10 par....... . Paid-in capital: Excess of issue price over par common stock..... Retained earnings. Total liabilities and stockholders' equity............ $ 146,600 224,600 321,600 13,400 655,000 (170,800) $1,190,400 $ 179,800 242,000 299,200 9,600 537,000 (132,200 $1,135,400 $ 250,200 $ 237,600 336,000 24,000 320,000 74,000 470,000 396,200 $1,190,400 217,800 $1,135,400