Question 13 (25 points)

 

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The following information is related to Alpha Company's fiscal year 2017.

           Income Statement:

                       Net Income                            $300,000

                       Depreciation Expense              50,000

                       Gain on Sale of Plant Assets     10,000

                       Interest Expense                           500

           Balance Sheet - 12/31/17: Increase (Decrease)

                       Accounts Payable                   ($4,000)

                       Plant Assets - Purchased       250,000

                       Plant Assets - Disposals         (100,000)

                       

           Additional Information:

                       Cash Balance - 12/31/2016: $50,000

Common Stock exchanged for outstanding Long Term Notes Payable of $125,000

                       Dividends paid were $25,000

Use this information to prepare the Statement of Cash Flows for Alpha Company using the indirect method.