The balance sheets for ABC Company showed the following information. Additional Information concerning transactions and events during 2015 are presented below.

( see balance sheet info in attachment)

Additional Data:

1. Net income for the year ended December 31, 2015, $71,000.

2. Depreciation on plant assets for the year, $12,700.

3. Sold the long-term investments for $28,000 (assume gain or loss is ordinary).

4. Paid cash dividends of $30,000.

5. Purchased machinery costing $26,500, paid cash.

6. Purchased machinery and received a $60,000 long-term note loan (assume no cash was received or paid by the company in this transaction).

7. Paid a $40,000 long-term note payable by issuing common stock.

Instructions

Using the format provided in the attachment, prepare a statement of cash flows (using the indirect method for the operating activities section) for 2015 for the ABC Company. (please show work)

1. The balance sheets for ABC Company showed the following information. Additional information concerning transactions and events during 2015 are presented below. ABC Company Balance Sheet Cash Accounts receivable (net) Inventory Long-term investments Property, plant & equipment December 31 2015 $ 35,900 $ 38,300 2014 10,200 20,300 35,000 42,000 0 15,000 236,500 150,000 Accumulated depreciation (37,700) (25,000) $308,000 $212,500 Accounts payable $ 17,000 $ 26,500 Accrued liabilities 21,000 17,000 Long-term notes payable 70,000 50,000 130,000 90,000 70,000 29,000 $308,000 $212,500 Common stock Retained earnings Additional data: 1. Net income for the year ended December 31, 2015, $71,000. 2. Depreciation on plant assets for the year, $12,700. 3. Sold the long-term investments for $28,000 (assume gain or loss is ordinary). 4. Paid cash dividends of $30,000. 5. Purchased machinery costing $26,500, paid cash. 6. Purchased machinery and received a $60,000 long-term note loan (assume no cash was received or paid by the company in this transaction). 7. Paid a $40,000 long-term note payable by issuing common stock. Instructions Using the format provided on the next page, prepare a statement of cash flows (using the indirect method for the operating activities section) for 2015 for ABC Company. ABC Company Statement of Cash Flows For the Year Ended December 31, 2015 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: $__________ $__________ __________________________________ __________ __________________________________ __________ __________________________________ __________ __________________________________ __________ __________________________________ __________ __________________________________ __________ __________ Net cash provided (used) by operating activities __________ Cash flows from investing activities ___________________________________ __________ ___________________________________ __________ ___________________________________ __________ Net cash provided (used) by investing activities __________ Cash flows from financing activities ___________________________________ __________ ___________________________________ __________ ___________________________________ __________ Net cash provided (used) by financing activities Net increase (decrease) in cash __________ $ Cash, January 1, 2015 Cash, December 31, 2015 $ Supplementary disclosures(s): ______________________________________________________________________________________ ______________________________________________________________________________________