Presented below are the statement of financial position, some accounts of the income statement and additional information of Avery Slings & Arrows, Inc. Identify the necessary information to prepare the statement of cash flows for the year ended December 2016. Prepare ou will need the statement of cash flows using both method: direct and indirect. For full credit, you must prepare the statement of cash flow in good form with necessary disclosures about noncash financing and investing activities. Label your work and answers clearly. You must show all formulas and calculations. For year ending 12/31/ 16 Cost of goods sold Salaries and wages Other operating expenses Bad debt expense Depreciation expense Amortization of intangibles Environmental liability expense Interest expense Income tax expense 3,490,000 632,000 421,000 45,000 757,000 5,000 25,000 935,000 177,000 ADDITIONAL INFORMATION During the year, ASA paid $2,767,000 in cash for land, building, and equipment. On August 5, 2016, ASA issued 25,000 shares of common stock for $42 per share. ASA marketable securities were of $15,000. Equipment costing $500,000 was sold during the year fr $59,000. The book value was $124,000 During the year, AAS declared cash dividends in the amount of $203,000. On April 1, 2016, the holders of $1,500,000 in convertible bonds elected to convert their bonds to common stock. The conversion ratio was 25 shares of common stock for each share $1,000 face value bond. The noncurrent investment represents 30% of the outstanding securities of the investee. This investment is accounted for on the equity method. During 2004, ASA received $29,000 in dividends from the investment and recorded earnings in affiliated company $150,000. On May 1, 2016, ASA acquired equipment signing a long term note payable in 5 years. The present value of the payments was $648,000. The first installment was paid at the end of the year $365,000 a. b. purchased $273,000 in marketable securities during the year. Dividend revenue received on d. g. h. i. ASA acquired a patent on a new process for $500,000 on October 15, 2016. j. During 2016, ASA sold marketable securities which it had acquired for $222,000 for $275,000. k. In February, ASA issued 150,000 shares ofcommon stock in a 50% stock dividend. ASA issued $3,000,000 in bonds at face value on August 1, 2016, ASA sold 500 shares of treasury stock which it had acquired for $20 per share for $46 per share on January 18, 2016 In October, ASA acquired 1,000 shares of treasury stock at $38 per share. Bad debts in the amount of $45,000 were written off during the year Net income for the period was $266,000 and sales were of $6,600,000 m. o. Avery Slings & Arrows Balance Sheet Current Assets Cash Securities Available for Sale (at market) Accounts Receivable (net) Merchandise Inventory Prepaid Expenses 2,261,000 2,850,000 100,000 1,947,000 1,900,000 900,000 50,000 5,072,000 5,800,000 258,000 602,000 4,000 Noncurrent Assets Investments in affiliated companies (equity method) Land, building & equipment Less Accumulated Depreciation Intangible Assets 2,121,000 2,000,000 20,715,000 17,800,000 (2,181,000) (1,800,000) 73,000 26,295,000 23,873,000 568,000 Total assets Current Liabilities Accounts Payable Salaries Payable Interest payable Income Taxes Payable Dividends Payable 347,000 18,000 156,000 167,000 128,000 650,000 21,000 55,000 107000 60.000 Noncurrent Liabilities Bonds Payable Premium/Discount on Bonds Payable Convertible Bonds Payable Long term note payable Environmental liability Other long term liabilities 7,000,000 4,000,000 642,000 656,000 1,500,000 3,000,000 2,108,000 1,825,000 275,000 250,000 590,000 2,590,000 Stockholder's Equity Common stock, $10 par Additional paid in capital -common Other paid in capital Unrealized (gain)/loss AFS invest Treasury stock (at cost) Retained Earnings 5,125,000 3,000,000 3,525,000 1,600,000 13,000 27,000 (80,000) (38,000) 10,000) 4,712,000 6,149,000 13,364,000 10,659,000 26,295,000 23,873,000 Total liabilities and equity Presented below are the statement of financial position, some accounts of the income statement and additional information of Avery Slings & Arrows, Inc. Identify the necessary information to prepare the statement of cash flows for the year ended December 2016. Prepare ou will need the statement of cash flows using both method: direct and indirect. For full credit, you must prepare the statement of cash flow in good form with necessary disclosures about noncash financing and investing activities. Label your work and answers clearly. You must show all formulas and calculations. For year ending 12/31/ 16 Cost of goods sold Salaries and wages Other operating expenses Bad debt expense Depreciation expense Amortization of intangibles Environmental liability expense Interest expense Income tax expense 3,490,000 632,000 421,000 45,000 757,000 5,000 25,000 935,000 177,000 ADDITIONAL INFORMATION During the year, ASA paid $2,767,000 in cash for land, building, and equipment. On August 5, 2016, ASA issued 25,000 shares of common stock for $42 per share. ASA marketable securities were of $15,000. Equipment costing $500,000 was sold during the year fr $59,000. The book value was $124,000 During the year, AAS declared cash dividends in the amount of $203,000. On April 1, 2016, the holders of $1,500,000 in convertible bonds elected to convert their bonds to common stock. The conversion ratio was 25 shares of common stock for each share $1,000 face value bond. The noncurrent investment represents 30% of the outstanding securities of the investee. This investment is accounted for on the equity method. During 2004, ASA received $29,000 in dividends from the investment and recorded earnings in affiliated company $150,000. On May 1, 2016, ASA acquired equipment signing a long term note payable in 5 years. The present value of the payments was $648,000. The first installment was paid at the end of the year $365,000 a. b. purchased $273,000 in marketable securities during the year. Dividend revenue received on d. g. h. i. ASA acquired a patent on a new process for $500,000 on October 15, 2016. j. During 2016, ASA sold marketable securities which it had acquired for $222,000 for $275,000. k. In February, ASA issued 150,000 shares ofcommon stock in a 50% stock dividend. ASA issued $3,000,000 in bonds at face value on August 1, 2016, ASA sold 500 shares of treasury stock which it had acquired for $20 per share for $46 per share on January 18, 2016 In October, ASA acquired 1,000 shares of treasury stock at $38 per share. Bad debts in the amount of $45,000 were written off during the year Net income for the period was $266,000 and sales were of $6,600,000 m. o. Avery Slings & Arrows Balance Sheet Current Assets Cash Securities Available for Sale (at market) Accounts Receivable (net) Merchandise Inventory Prepaid Expenses 2,261,000 2,850,000 100,000 1,947,000 1,900,000 900,000 50,000 5,072,000 5,800,000 258,000 602,000 4,000 Noncurrent Assets Investments in affiliated companies (equity method) Land, building & equipment Less Accumulated Depreciation Intangible Assets 2,121,000 2,000,000 20,715,000 17,800,000 (2,181,000) (1,800,000) 73,000 26,295,000 23,873,000 568,000 Total assets Current Liabilities Accounts Payable Salaries Payable Interest payable Income Taxes Payable Dividends Payable 347,000 18,000 156,000 167,000 128,000 650,000 21,000 55,000 107000 60.000 Noncurrent Liabilities Bonds Payable Premium/Discount on Bonds Payable Convertible Bonds Payable Long term note payable Environmental liability Other long term liabilities 7,000,000 4,000,000 642,000 656,000 1,500,000 3,000,000 2,108,000 1,825,000 275,000 250,000 590,000 2,590,000 Stockholder's Equity Common stock, $10 par Additional paid in capital -common Other paid in capital Unrealized (gain)/loss AFS invest Treasury stock (at cost) Retained Earnings 5,125,000 3,000,000 3,525,000 1,600,000 13,000 27,000 (80,000) (38,000) 10,000) 4,712,000 6,149,000 13,364,000 10,659,000 26,295,000 23,873,000 Total liabilities and equity