Question
Selected financial information for the Bravo Zulu company for the fiscal year ended December 31, 2016 is as follows: Net Income $122,500 Depreciation expense 50,000
Selected financial information for the Bravo Zulu company for the fiscal year ended December 31, 2016 is as follows:
Net Income | $122,500 |
Depreciation expense | 50,000 |
Purchases of plant assets | 125,000 |
Disposals of plants assets | 20,000 |
Gain on Disposal of plant assets | 7,500 |
Accounts receivable decreased | 2,500 |
Accounts payable decreased | 4,000 |
Interest expense | 5,000 |
Income tax expense | 2,500 |
Additionally, Bravo-Zulu issued stock in exchange for an outstanding note payable of $72,500. The cash balance on January 1, 2016 was $37,000. The January 1, 2016 balance for Retained earnings was $250,000 and the December 31, 2016 balance for Retained Earnings was $342,500. Use this information to prepare Bravo-Zulu Companys Statement of Cash Flows for the year ended December 31, 2016 using the indirect method.
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