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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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