Question
Here are comparative balance sheets for Velo Company. VELO COMPANY Comparative Balance Sheets December 31 Assets20172016 Cash $ 73,000$ 32,800 Accounts receivable 86,50070,500 Inventory 169,500186,500
Here are comparative balance sheets for Velo Company.
VELO COMPANY
Comparative Balance Sheets
December 31
Assets20172016
Cash $ 73,000$ 32,800
Accounts receivable 86,50070,500
Inventory 169,500186,500
Land 73,500101,100
Equipment 259,800201,000
Accumulated depreciationequipment (66,000)(34,500 )
Total $596,300$557,400
Liabilities and Stockholders' Equity
Accounts payable $ 35,400$ 47,500
Bonds payable 149,200203,100
Common stock ($1 par) 216,200174,000
Retained earnings 195,500132,800
Total $596,300$557,400
Additional information:
1. Net income for 2017 was $103,900.
2. Cash dividends of $41,200 were declared and paid.
3. Bonds payable amounting to $53,900 were redeemed for cash $53,900.
4. Common stock was issued for $42,200 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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