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Prepare a complete statement of cash flows; report its operating activities using the indirect method. Disclose any non cash investing activities and financing activities in

Prepare a complete statement of cash flows; report its operating activities using the indirect method. Disclose any non cash investing activities and financing activities in a note. image text in transcribed
Gazelle Corporation, a merchandiser, recently (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, Indirect: Statement of (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for cash flows inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's balance sheets and income statement follow. A1 P1 P2 P3 GAZELLE CORPORATION Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash 123,450 $ 61,550 77,100 80,750 240,600 250,700 17,000 456,250 410,000 262.250 200,000 Prepaid expenses 15,100 GAZELLE CORPORATION Income Statement For Year Ended December 31, 2017 Equipment (110.750 (95.000) Total assets Liabilities and Equity Accounts payable $607750 551500ales 1,185,000 595,000 590,000 17,750 $102,000 10,000 32,750112,000 100,000 77,500 132,750 189,500 Gross profit... Operating expenses 15,000 Total current liabilities.... Long-term notes payable . . . Total liabilities Equity Depreciation expense ..$ 38,600 362,850 Other expenses Total operating expenses 401.450 188,550 215,000 200,000 Other gains (losses) Paid-in capital in excess Loss on sale of equipment Income before taxes (2,100) 186,450 28,350 $ 158,100 30,000 Retained earnings.... Total liabilities and equity 230,000 125,500 $607.750 $515.000 Income taxes expense Net income Additional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $2.100 (details in b). b. Sold equipment costing $51,000, with accumulated depreciation of $22,850, for $26,050 cash. c. Purchased equipment costing S113,250 by paying S43,250 cash and signing a long-term note for the balance. d. Borrowed $5,000 cash by signing a short-term note payable. e. Paid $47.500 cash to reduce the long-term notes ayable. f. Issued 3,000 shares of common stock for S15 cash per share g. Declared and paid cash dividends of $53,600

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