Question 1

Headland Corporations balance sheet at the end of 2016 included the following items.

Current assets (Cash $82,000)		$236,190			Current liabilities		$151,190
Land		32,230			Bonds payable		101,190
Buildings		121,190			Common stock		182,230
Equipment		92,230			Retained earnings		46,230
Accum. depr.-buildings		(31,190	)		Total		$480,840
Accum. depr.-equipment		(11,000	)
Patents		41,190
Total		$480,840

The following information is available for 2017.

1.		Net income was $56,450.
2.		Equipment (cost $21,190 and accumulated depreciation $9,190) was sold for $11,190.
3.		Depreciation expense was $5,190 on the building and $10,190 on equipment.
4.		Patent amortization was $2,500.
5.		Current assets other than cash increased by $29,000. Current liabilities increased by $14,190.
6.		An addition to the building was completed at a cost of $28,190.
7.		A long-term investment (Equity) in stock was purchased for $16,000.
8.		Bonds payable of $52,230 were issued.
9.		Cash dividends of $30,000 were declared and paid.
10.		Treasury stock was purchased at a cost of $11,000.

(a) Prepare a statement of cash flows for 2017. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) HEADLAND CORPORATION Statement of Cash Flows Adjustments to reconcile net income to