Comparative balance sheets for Ehub BD Ltd are presented below.

EHub BD Ltd

Comparative Balance Sheet

Decemebr 31

Assets 2017 2016

Cash 73000 22000

Accoutns Receivable 85000 76000

Inventory 180000 189000

Land 75000 100000

Equipement 250000 200000

Accu Dep - Equipment (66,000) (42,000)

=Total =597000 =545000

Liability and Equity

Accounts Payable 34000 47000

Bonds Payable 150000 200000

Common Stock ($1 Par ) 214000 164000

Retained Earnings 199000 134000

=Total =597000 =545000

Additional information:

1. Net income for 2017 was $135,000.

2. Cash dividends of $70,000 were declared and paid.

3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.

4. Common stock was issued for $50,000 cash.

5. Depreciation expense was $24,000.

6. Sales revenue for the year was $978,000.

7. Land was sold at cost, and equipment was purchased for cash.

Instructions

a. (prepare) a statement of cash flows for 2017 using the indirect method.(prepare)

b. Comment on the quality of income of the company.

c. Comment on investing and financings cashflows of the company.