Question
Prepare a statement of cash flows using the indirect method. (please show all work/ calculations) 2017 2016 Assets: Cash 200,000 70,000 Accounts receivable, net 87,000
Prepare a statement of cash flows using the indirect method. (please show all work/ calculations)
| 2017 | 2016 | ||
| Assets: | |||
| Cash | 200,000 | 70,000 | |
| Accounts receivable, net | 87,000 | 65,000 | |
| Inventory | 55,000 | 60,000 | |
| Property, plant & equipment | 700,000 | 600,000 | |
| Accumulated depreciation | (100,000) | (60,000) | |
| Total Assets | 942,000 | 735,000 | |
| Liabilities & Equity | |||
| Accounts payable | 45,000 | 40,000 | |
| Accrued liabilities | 46,000 | 40,000 | |
| Common stock | 460,000 | 460,000 | |
| Retained earnings | 391,000 | 195,000 | |
| 942,000 | 735,000 | ||
| Sales | 1,200,000 | ||
| Cost of goods sold | 650,000 | ||
| Gross profit | 550,000 | ||
| Operating expenses | 180,000 | ||
| Pre-tax income | 370,000 | ||
| Income taxes | 74,000 | ||
| Net income | 296,000 |
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