he comparative balance sheets and income statement for Finch Corporation follow Balance Sheets As of December 31 2017 2016 Assets Cash $ 62,339 $ 39,000 Accounts receivable 31,377 23,010 Merchandise inventory 158,029 173,830 Prepaid rent 2,420 4,840 Equipment 255,050 288,640 Accumulated depreciation (144,860 ) (230,310 ) Land 195,030 83,530 Total assets $ 559,385 $ 382,540 Liabilities Accounts payable (inventory) $ 67,838 76,950 Salaries payable 30,625 26,250 Stockholders equity Common stock, $50 par value 248,000 200,000 Retained earnings 212,922 79,340 Total liabilities and equity $ 559,385 $ 382,540 Income Statement For the Year Ended December 31, 2017 Sales $ 1,498,000 Cost of goods sold (796,138 ) Gross profit 701,862 Operating expenses Depreciation expense (23,840 ) Rent expense (26,480 ) Salaries expense (258,830 ) Other operating expenses (259,130 ) Net income $ 133,582 Other Information Purchased land for $111,500 Purchased new equipment for $96,700 Sold old equipment that cost $130,290 with accumulated depreciation of $109,290 for $21,000 cash Issued common stock for $48,000 Required Prepare the statement of cash flows for 2017 using the indirect method (Amounts to be deducted and cash outflows should be indicated by a minus sign ) Other Information Purchased land for $111,500 Purchased new equipment for $96,700 Sold old equipment that cost $130,290 with accumulated depreciation of $109,290 for $21,000 cash Issued common stock for $48,000 Other Information Purchased land for $111,500 Purchased new equipment for $96,700 Sold old equipment that cost $130,290 with accumulated depreciation of $109,290 for $21,000 cash Issued common stock for $48,000 FINCH CORPORATION Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from operating activities Add Increases in current assets and Decreases in current liabilities Less Increases in current assets and Decreases in current liabilities Plus Noncash charges Cash flows from investing activities Cash flows from financing activities Ending cash balance

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 26, 2024

he comparative balance sheets and income statement for Finch Corporation follow: Balance Sheets As of December 31 2017 2016 Assets Cash $ 62,339 $ 39,000

he comparative balance sheets and income statement for Finch Corporation follow:

Balance Sheets As of December 31
	2017			2016
Assets
Cash	$	62,339		$	39,000
Accounts receivable		31,377			23,010
Merchandise inventory		158,029			173,830
Prepaid rent		2,420			4,840
Equipment		255,050			288,640
Accumulated depreciation		(144,860	)		(230,310	)
Land		195,030			83,530
Total assets	$	559,385		$	382,540
Liabilities
Accounts payable (inventory)	$	67,838			76,950
Salaries payable		30,625			26,250
Stockholders equity
Common stock, $50 par value		248,000			200,000
Retained earnings		212,922			79,340
Total liabilities and equity	$	559,385		$	382,540

Income Statement For the Year Ended December 31, 2017
Sales	$	1,498,000
Cost of goods sold		(796,138	)
Gross profit		701,862
Operating expenses
Depreciation expense		(23,840	)
Rent expense		(26,480	)
Salaries expense		(258,830	)
Other operating expenses		(259,130	)
Net income	$	133,582

Other Information

Purchased land for $111,500.
Purchased new equipment for $96,700.
Sold old equipment that cost $130,290 with accumulated depreciation of $109,290 for $21,000 cash.
Issued common stock for $48,000.

Required

Prepare the statement of cash flows for 2017 using the indirect method. (Amounts to be deducted and cash outflows should be indicated by a minus sign.)

Other Information

Purchased land for $111,500.
Purchased new equipment for $96,700.
Sold old equipment that cost $130,290 with accumulated depreciation of $109,290 for $21,000 cash.
Issued common stock for $48,000.

Other Information

Purchased land for $111,500.
Purchased new equipment for $96,700.
Sold old equipment that cost $130,290 with accumulated depreciation of $109,290 for $21,000 cash.
Issued common stock for $48,000.

FINCH CORPORATION
Statement of Cash Flows
For the Year Ended December 31, 2017
Cash flows from operating activities:

Add: Increases in current assets and Decreases in current liabilities:




Less: Increases in current assets and Decreases in current liabilities:



Plus: Noncash charges



Cash flows from investing activities:





Cash flows from financing activities:





Ending cash balance