Prepare a Cash Flow Statement for Rocket Corp. for the year ended December 31, 2017. Use the indirect method for the operating section. Use the balances provided below. [25 marks] Rocket Corporation Statement of Financial Position At December 31, 2017 2016 Cash $65,000 $29,000 Accounts Receivable 87,000 59,000 Inventory 133,000 81,000 Investments in shares (FV-OCI) 63,000 84,000 Land 65,000 103,000 Equipment 390,000 430,000 Accumulated depreciation (117,000) (86,000) Goodwill 124,000 173,000 Total Assets $810,000 $873,000 Accounts payable 12,000 51,000 Dividends payable 15,000 32,000 Notes Payable 220,000 335,000 Common shares 265,000 125,000 Retained earnings 288,000 284,000 Accumulated OCI 10,000 46,000 Total Liabilities & Shareholders Equity $810,000 $873,000 Additional information: a. Net Income for 2017 was $19,000 b. In March 2017, Rocket purchased a plot of land for the future construction of a plant. In November 2017, Rocket sold a different plot of land with original cost of $86,000 for proceeds of $95,000. c. April 2017 - Rocket retired notes payable in the amount of $140,000 by issuing common shares. In December 2017, notes payable in the amount of $25,000 were issued in exchange for cash. d. Fair Value - OCI investments were purchased in July 2017 for a cost of $15,000 (cash). At December 31, 2017, the fair value of the portfolio was $63,000. There were no sales in FV-OCI in 2017. Intermediate Financial Accounting I - ADMN 3221H Accounting Assignment #2 Professor Wallace Fall 2018 3 e. No equipment was purchased during the year. Rocket sold equipment - original cost $40,000 for $21,000 (cash) on December 31, 2017. The related accumulated depreciation was $12,000. f. Dividends on the common shares were declared as follows: a. December 2017 - $15,000; paid January 2018 b. December 2016 -$32,000; paid January 2017 Rocket treats dividends paid as a financing activity. g. Impairment in Goodwill was recorded in 2017 to reflect a decrease in the recoverable amount of goodwill. No Goodwill was generated or removed in 2017 (other than impairment).