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Here are comparative balance sheets for Velo Company. VELO COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $72,900 $32,600 Accounts receivable 85,800 71,300
Here are comparative balance sheets for Velo Company.
VELO COMPANY Comparative Balance Sheets December 31 | ||||||
Assets | 2017 | 2016 | ||||
Cash | $72,900 | $32,600 | ||||
Accounts receivable | 85,800 | 71,300 | ||||
Inventory | 170,100 | 186,800 | ||||
Land | 73,700 | 100,200 | ||||
Equipment | 259,700 | 200,200 | ||||
Accumulated depreciationequipment | (66,200 | ) | (33,700 | ) | ||
Total | $596,000 |
| $557,400 |
| ||
Liabilities and Stockholders Equity | ||||||
Accounts payable | $35,000 | $46,700 | ||||
Bonds payable | 151,000 | 204,000 | ||||
Common stock ($1 par) | 216,400 | 175,500 | ||||
Retained earnings | 193,600 |
| 131,200 |
| ||
Total | $596,000 |
| $557,400 |
|
Additional information:
1. | Net income for 2017 was $102,800. | |
2. | Cash dividends of $40,400 were declared and paid. | |
3. | Bonds payable amounting to $53,000 were redeemed for cash $53,000. | |
4. | Common stock was issued for $40,900 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. (Show amounts that decrease cash flow with either a - sign e.g. -15,000, or in parenthesis e.g. (15,000).)
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