Financial Reporting & Analysis P17-3

1056 CHAPTER 17 Statement of Cash Flows \begin{tabular}{|c|c|} \hline \begin{tabular}{l} Opus One, Inc.: Preparing \\ and analyzing the cash \\ flow statement (LO 17-1, \\ LO 17-2, LO 17-4) \end{tabular} & \begin{tabular}{l} The following information is based on a real company whose name has been disguised. Opus \\ One operates in a single business segment, the retailing and servicing of home audio, car audio, \\ and video equipment. Its operations are conducted in Texas through 20 stores and two service \\ centers. The information provided in the annual report has been combined and abbreviated. \\ Additional Information Regarding Year Ended June 30,2017 : \\ - The company did not declare or pay any cash or stock dividends during the year. \\ - The company reported a $7,377 loss from scrapping equipment with a book value of the \\ same amount. \\ - The depreciation expense for the year was $2,265,735. \end{tabular} \\ \hline \end{tabular} Balance Sheet as of June 30, 2017 and 2016 June 30, February 28, 2021. Required: 1. Prepare a statement of cash flows for the year ended June 30,2017 , using the indirect approach. 2. On the basis of the cash flow statement, analyze Opus One's financial performance during the fiscal year 2017