Question
Here are comparative balance sheets for Velo Company. VELO COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $ 72,600 $ 33,000 Accounts receivable
Here are comparative balance sheets for Velo Company.
VELO COMPANY Comparative Balance Sheets December 31 | ||||||
Assets | 2017 | 2016 | ||||
Cash | $ 72,600 | $ 33,000 | ||||
Accounts receivable | 86,300 | 71,400 | ||||
Inventory | 170,500 | 186,600 | ||||
Land | 73,800 | 100,800 | ||||
Equipment | 260,000 | 200,800 | ||||
Accumulated depreciationequipment | (65,900 | ) | (34,100 | ) | ||
Total | $597,300 |
| $558,500 |
| ||
Liabilities and Stockholders Equity | ||||||
Accounts payable | $ 35,400 | $ 47,000 | ||||
Bonds payable | 151,100 | 204,000 | ||||
Common stock ($1 par) | 214,900 | 174,700 | ||||
Retained earnings | 195,900 |
| 132,800 |
| ||
Total | $597,300 |
| $558,500 |
|
Additional information:
1. | Net income for 2017 was $104,800. | |
2. | Cash dividends of $41,700 were declared and paid. | |
3. | Bonds payable amounting to $52,900 were redeemed for cash $52,900. | |
4. | Common stock was issued for $40,200 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).)
VELO COMPANY Statement of Cash Flows |
VELO COMPANY Statement of Cash Flows Adjustments to reconcile net income to Co
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