Sapphire, Inc Statement of Cash Flows Indirect Method OPERATING ACTIVITIES Net cash flow from operations INVESTMENT ACTIVITIES Sapphire, Inc. Balance Sheet Change 2017 2016 Assets Cash 11,000 S 32,000 $21,000 Accounts receivable 2,800 32,700 29,900 Inventory (9,500) 85,100 94,600 Prepaid Exp 600 3,300 2,700 Equipment 20,000 157,000 137,000 Less:Accumulated Depreciation" 200 27,800 27,600 Investments 16,000 116,000 100,000 Liabilities Accounts payable (2,200) 34,300 36,500 Salaries payable (6,000) 1,600 7,600 Interest payable 3,600 3,600 0 Taxes payable 5,200 Other accrued Exp Bonds payable (3,600) 5,200 18,900 22,500 (151,000) 62,000 213,000 Net cash flows used for investing activities FINANCIAL ACTIVITIES Stockholders' equity Common stock Retained eamings Net cash flows used for financing activities Net increase in cash Cash at the beginning of the year Cash at the end of the year 20,000 96,000 76,000 174,700 176,700 2,000 NOTES Net Income $ 183,300 Sapphire sold equipment for $9,000 which had originally cost $13,200 and had a balance of accumulated depreciation of $5,000. Investments were purchased with cash. Sapphire issued common stock for cash. Sapphire DID NOT issue any new long tem notes or bonds.