Question
Here are comparative balance sheets for Velo Company. VELO COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $72,600 $33,100 Accounts receivable 85,500 70,600
Here are comparative balance sheets for Velo Company. VELO COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $72,600 $33,100 Accounts receivable 85,500 70,600 Inventory 169,500 187,200 Land 72,800 100,200 Equipment 260,700 200,900 Accumulated depreciationequipment (65,800 ) (34,000 ) Total $595,300 $558,000 Liabilities and Stockholders Equity Accounts payable $35,200 $47,400 Bonds payable 151,300 204,000 Common stock ($1 par) 216,900 175,600 Retained earnings 191,900 131,000 Total $595,300 $558,000 Additional information: 1. Net income for 2017 was $103,300. 2. Cash dividends of $42,400 were declared and paid. 3. Bonds payable amounting to $52,700 were redeemed for cash $52,700. 4. Common stock was issued for $41,300 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.
VELO COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash Accounts receivable $72,600 85,500 169,500 72,800 260,700 $33,100 70,600 187,200 100,200 200,900 (65,800) (34,000) $595,300 $558,000 Inventory Land Equipment Accumulated depreciation- equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total $35,200 151,300 216,900 191,900 $595,300 $47,400 204,000 175,600 131,000 $558,000 Additional information: 1. Net income for 2017 was $103,300. 2. Cash dividends of $42,400 were declared and paid. 3. Bonds payable amounting to $52,700 were redeemed for cash $52,700. 4. Common stock was issued for $41,300 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. (ShStep by Step Solution
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