Inc., uses the indirect method for preparing the statement of cash flows. Prepare the operating section of the statement of cash flows for . (Use parentheses or a minus sign for numbers to be subtracted or net cash outflow.)
The comparative balance sheet for Mosaic Travel Services, Inc., for December 31, 2017 and 2016, is as follows: (Click the icon to view the comparative balance sheet.) The following information is taken from the records of Mosaic Travel Services, Inc.: (Click the icon to view the transaction data.) Mosaic Travel Services, Inc., uses the indirect method for preparing the statement of cash flows. Prepare the operating section of the statement of cash flows for 2017. (Use parentheses or a minus sign for numbers to be subtracted or net cash outflow.) Mosaic Travel Services, Inc. Statement of Cash Flows-Operating Activities Section (Indirect Method) For the Year Ended December 31, 2017 Operating Activities: Net income Adjustments to reconcile net income to cash basis: Net cash provided by (used for) operating activities A A B 1 N Mosaic Travel Services, Inc. Comparative Balance Sheets December 31, 2017 and 2016 Assets 2017 3 4 2016 5 Current assets: 6 Cash $ 42,000 $ 15,000 75,000 83,000 59,000 23,000 7 Accounts receivable 8 Inventory 9 Prepaid insurance 10 Total current assets 9,000 10,000 $ 185,000 $ 131,000 11 12 Land $ 104,000 $ 120,000 79,000 60,000 13 Equipment 14 Less: Accumulated depreciation (21,000) (14,000) $ 347,000 $ 297,000 15 Total assets 17 Liabilities 18 Current liabilities: $ 27,000 $ 39,000 36,000 18,000 19 Accounts payable 20 Wages payable 21 Interest payable 22 Income taxes payable Total current liabilities 14,000 13,000 7,000 5,000 23 $ 84,000 $ 75,000 24 25 Notes payable (long-term) 97,000 87,000 26 Total liabilities $ 181,000 $ 162,000 27 28 Stockholders' equity $ 127,000 $ 123,000 29 Common stock 30 Retained earnings 31 Total stockholders' equity 39,000 12,000 $ 166,000 $ 135,000 32 33 Total liabilities and equity $ 347,000 $ 297,000 Transactions a. Land was sold for $12,400. b. Equipment was purchased for cash. C. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. Net income for 2017 was $38,000. f. Cash dividends paid during the year were $11,000. Print Done
