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Exercise 13-8 Here are comparative balance sheets for Velo Company. VELO COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $ 73,000 $ 33,400
Exercise 13-8
Here are comparative balance sheets for Velo Company.
VELO COMPANY Comparative Balance Sheets December 31 | ||||||
Assets | 2017 | 2016 | ||||
Cash | $ 73,000 | $ 33,400 | ||||
Accounts receivable | 86,500 | 70,900 | ||||
Inventory | 170,000 | 187,000 | ||||
Land | 72,900 | 100,300 | ||||
Equipment | 261,000 | 200,700 | ||||
Accumulated depreciationequipment | (66,000 | ) | (34,200 | ) | ||
Total | $597,400 |
| $558,100 |
| ||
Liabilities and Stockholders Equity | ||||||
Accounts payable | $ 35,400 | $ 47,000 | ||||
Bonds payable | 148,800 | 203,600 | ||||
Common stock ($1 par) | 216,500 | 175,300 | ||||
Retained earnings | 196,700 |
| 132,200 |
| ||
Total | $597,400 |
| $558,100 |
|
Additional information:
1. | Net income for 2017 was $101,800. | |
2. | Cash dividends of $37,300 were declared and paid. | |
3. | Bonds payable amounting to $54,800 were redeemed for cash $54,800. | |
4. | Common stock was issued for $41,200 cash. | |
5. | No equipment was sold during 2017, but land was sold at cost. |
Prepare a statement of cash flows for 2017 using the indirect method.
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