Statement of Cash Flows-Indirect Method The comparative balance sheet of TechSource at December 31, 20Y7 and...

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Statement of Cash Flows-Indirect Method The comparative balance sheet of TechSource at December 31, 20Y7 and 20Y6, is as follows: TECHSOURCE Comparative Balance Sheets December 31, 2017 and 20Y6 Changes Increase 20Y7 2016 (Decrease) Assets Current assets: > Cash $52,650 $36,200 $16,450 Accounts receivable 91,080. 53,000 38,080 Inventory 62,150 59,700 2,450 Estimated returns inventory 5,300 4,300 1,000 Office supplies 480 600 (120) Prepaid insurance 2,650 3,000 (350) Total current assets $214,310 $156,800 $57,510 Property, plant, and equipment: Land: $20,000 $20,000 $0 Store equipment 27,100 20,000 7,100 Accumulated depreciation-store equipment (5,700) (2,600) (3,100) Office equipment 15,570 10,000 5,570 Accumulated depreciation-office equipment (4,720) (2,230) (2,490) Total property, plant, and equipment $52,250 $45,170 $7,080 Total assets $266,560 $201,970 $64,590 Liabilities. Current liabilities: Accounts payable $12,466 $5,216 $7,250 Customer refunds payable 7,954 7,454 500 Estimated coupons payable $2,000 1,600 400 Notes payable (current portion) 5,000 5,000 0 Salaries payable 1,140 1,500 (360) Unearned rent 1,800 2,400 (600) Total current liabilities $30,360 $23,170 $7,190 Notes payable 20,000 25,000 (5,000) Total liabilities $50,360 $48,170 $2,190 Stockholders' Equity Common stock $25,000 $25,000 $0 Retained earnings 191,200 128,800 62,400 Total stockholders' equity $216,200 $153,800 $62,400 Total liabilities and stockholders' equity $266,560 $201,970 $64,590 Additional data obtained from an examination of the accounts in the ledger for 2017 are as follows: a. Store equipment was acquired for $7,100 cash. b. Office equipment was acquired for $5,570 cash. c. Principal relating to the notes payable of $5,000 was paid. d. There was a $80,400 increase in Retained Earnings for net income. e. There was a $18,000 decrease in Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. L payments, decreases in cash, or any negative adjustments. TechSource Statement of Cash Flows For the Year Ended December 31, 20Y7 Cash flows from (used for) operating activities: Net income Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation expense-store equipment x Depreciation expense-office equipment Change in current operating assets and liabilities: Increase in accounts receivable Increase in inventory Increase in estimated returns inventory Decrease in office supplies Decrease in prepaid insurance Increase in accounts payable Increase in customer refunds payable Increase in estimated coupons payable Decrease in salaries payable Decrease in unearned rent Net cash flows from operating activities Cash flows from (used for) investing activities: Cash paid for store equipment Cash paid for office equipment Net cash flows used for investing activities Cash flows from (used for) financing activities: Cash paid on note payable Cash paid for dividends Net cash flows used for financing activities Q O QO Cash flows from (used for) financing activities: Cash paid on note payable Cash paid for dividends. Net cash flows used for financing activities Net increase in cash Cash as of January 1, 20Y7 > Cash as of December 31, 2017 0000 Statement of Cash Flows-Indirect Method The comparative balance sheet of TechSource at December 31, 20Y7 and 20Y6, is as follows: TECHSOURCE Comparative Balance Sheets December 31, 2017 and 20Y6 Changes Increase 20Y7 2016 (Decrease) Assets Current assets: > Cash $52,650 $36,200 $16,450 Accounts receivable 91,080. 53,000 38,080 Inventory 62,150 59,700 2,450 Estimated returns inventory 5,300 4,300 1,000 Office supplies 480 600 (120) Prepaid insurance 2,650 3,000 (350) Total current assets $214,310 $156,800 $57,510 Property, plant, and equipment: Land: $20,000 $20,000 $0 Store equipment 27,100 20,000 7,100 Accumulated depreciation-store equipment (5,700) (2,600) (3,100) Office equipment 15,570 10,000 5,570 Accumulated depreciation-office equipment (4,720) (2,230) (2,490) Total property, plant, and equipment $52,250 $45,170 $7,080 Total assets $266,560 $201,970 $64,590 Liabilities. Current liabilities: Accounts payable $12,466 $5,216 $7,250 Customer refunds payable 7,954 7,454 500 Estimated coupons payable $2,000 1,600 400 Notes payable (current portion) 5,000 5,000 0 Salaries payable 1,140 1,500 (360) Unearned rent 1,800 2,400 (600) Total current liabilities $30,360 $23,170 $7,190 Notes payable 20,000 25,000 (5,000) Total liabilities $50,360 $48,170 $2,190 Stockholders' Equity Common stock $25,000 $25,000 $0 Retained earnings 191,200 128,800 62,400 Total stockholders' equity $216,200 $153,800 $62,400 Total liabilities and stockholders' equity $266,560 $201,970 $64,590 Additional data obtained from an examination of the accounts in the ledger for 2017 are as follows: a. Store equipment was acquired for $7,100 cash. b. Office equipment was acquired for $5,570 cash. c. Principal relating to the notes payable of $5,000 was paid. d. There was a $80,400 increase in Retained Earnings for net income. e. There was a $18,000 decrease in Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. L payments, decreases in cash, or any negative adjustments. TechSource Statement of Cash Flows For the Year Ended December 31, 20Y7 Cash flows from (used for) operating activities: Net income Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation expense-store equipment x Depreciation expense-office equipment Change in current operating assets and liabilities: Increase in accounts receivable Increase in inventory Increase in estimated returns inventory Decrease in office supplies Decrease in prepaid insurance Increase in accounts payable Increase in customer refunds payable Increase in estimated coupons payable Decrease in salaries payable Decrease in unearned rent Net cash flows from operating activities Cash flows from (used for) investing activities: Cash paid for store equipment Cash paid for office equipment Net cash flows used for investing activities Cash flows from (used for) financing activities: Cash paid on note payable Cash paid for dividends Net cash flows used for financing activities Q O QO Cash flows from (used for) financing activities: Cash paid on note payable Cash paid for dividends. Net cash flows used for financing activities Net increase in cash Cash as of January 1, 20Y7 > Cash as of December 31, 2017 0000