Exercise 13-8

Here are comparative balance sheets for Velo Company.

VELO COMPANY

Comparative Balance Sheets

December 31

Assets

2017

2016

Cash$72,500

$32,500

Accounts receivable85,500

70,500

Inventory169,500

186,500

Land72,000

100,000

Equipment259,000

199,000

Accumulated depreciationequipment(65,500

)

(33,500

)

Total$593,000

$555,000

Liabilities and Stockholders' Equity

Accounts payable$35,000

$46,500

Bonds payable148,000

203,000

Common stock ($1 par)214,000

172,000

Retained earnings196,000

133,500

Total$593,000

$555,000

Additional information:

1.Net income for 2017 was $101,000.2.Cash dividends of $38,500were declared and paid.3.Bonds payable amounting to $55,000were redeemed for cash $55,000.4.Common stock was issued for $42,000cash.5.No equipment was sold during 2017, but land was sold at cost.

make statement of cash flows for 2017 using the indirect method.(Show amounts that decrease cash flow with either a - sign e.g. -15,000, or in parenthesis e.g. (15,000).)