Instructions

(a) Prepare a statement of cash flows for 2017 using the indirect method. (b) Compute free cash flow.

re a statement of cash -indirect method. E13-8 Here are comparative statements of financial position for Syal SE. SYAL SE Comparative Statements of Financial Position December 31 Assets 2017 2016 Land 73,000 100,000 Equipment 260,000 200,000 Accumulated depreciation-equipment (66,000) (34,000) Inventory 170,000 187,000 Accounts receivable 85,000 71,000 Cash 73,000 33,000 Total 595,000 557,000 Equity and Liabilities Share capital-ordinary (1 par) 216,000 174,000 Retained earnings 194,000 136,000 Bonds payable 150,000 200,000 Accounts payable 35,000 47,000 Total 595,000 557,000 Additional information: 1. Net income for 2017 was 103,000. 2. Depreciation expense was 32,000. 3. Cash dividends of 45,000 were declared and paid. 4. Bonds payable amounting to 50,000 were redeemed for cash 50,000. 5. Ordinary shares were issued for 42,000 cash. 6. No equipment was sold during 2017. 7. Land was sold for its book value of 27,000. Instructions Prepare a statement of cash flows for 2017 using the indirect method