Learning Goal 21, continued LG 21-4, continued Solutions are in the disk the book and at: www.we Norwalk, Inc. Comparative Balance Sheets December 31 2017 2016 $103,000 221,000 347,000 671,000 $128.000 197,000 325,000 650,000 853,000 (472,000) 381,000 $1,052,000 849,000 (455,000 394,000 $1,044,000 Assets Current assets Cash.... Accounts receivable ... Merchandise inventory ...... Total current assets. Property, plant, and equipment Fixtures and equipment....... Less: accumulated depreciation ............ Total property, plant, and equipment ..... Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable ..... Income taxes payable...... Total current liabilities. ... Long-term liabilities Notes payable ..... Total liabilities ..... Stockholders' equity Common stock ..... Retained earnings... Total stockholders' equity ......... Total liabilities and stockholders' equity $189,000 28,000 217,000 $181,000 31,000 212,000 25,000 242,000 150,000 362,000 323,000 487,000 810,000 $1,052,000 234,000 448,000 682,000 $1,044,000 Additional information for 2017: Equipment was sold for $22,000 cash. The cost All sales and merchandise inventory purchase of the equipment was $30,000. on account. Accumulated depreciation on the equipment Merchandise purchases are recorded in accou sold is $15,000. payable. $34,000 of equipment was purchased. Instructions: a. For the statement of cash flows, prepare the operating activities section of the statement of cash flows for the calendar year 2017 using the indirect method. b. What is the difference between operating cash flow and net income? What is the difference between the net change in cash and net income? c. What were the main sources of cash and uses of cash during the year? Learning Goal 21, continued LG 21-4, continued Solutions are in the disk the book and at: www.we Norwalk, Inc. Comparative Balance Sheets December 31 2017 2016 $103,000 221,000 347,000 671,000 $128.000 197,000 325,000 650,000 853,000 (472,000) 381,000 $1,052,000 849,000 (455,000 394,000 $1,044,000 Assets Current assets Cash.... Accounts receivable ... Merchandise inventory ...... Total current assets. Property, plant, and equipment Fixtures and equipment....... Less: accumulated depreciation ............ Total property, plant, and equipment ..... Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable ..... Income taxes payable...... Total current liabilities. ... Long-term liabilities Notes payable ..... Total liabilities ..... Stockholders' equity Common stock ..... Retained earnings... Total stockholders' equity ......... Total liabilities and stockholders' equity $189,000 28,000 217,000 $181,000 31,000 212,000 25,000 242,000 150,000 362,000 323,000 487,000 810,000 $1,052,000 234,000 448,000 682,000 $1,044,000 Additional information for 2017: Equipment was sold for $22,000 cash. The cost All sales and merchandise inventory purchase of the equipment was $30,000. on account. Accumulated depreciation on the equipment Merchandise purchases are recorded in accou sold is $15,000. payable. $34,000 of equipment was purchased. Instructions: a. For the statement of cash flows, prepare the operating activities section of the statement of cash flows for the calendar year 2017 using the indirect method. b. What is the difference between operating cash flow and net income? What is the difference between the net change in cash and net income? c. What were the main sources of cash and uses of cash during the year