Question
The comparative balance sheet of Cromme Inc. for December 31, 2016 and 2015, is shown as follows: 1 Dec. 31, 2016 Dec. 31, 2015 2
The comparative balance sheet of Cromme Inc. for December 31, 2016 and 2015, is shown as follows:
1 |
| Dec. 31, 2016 | Dec. 31, 2015 |
2 | Assets |
|
|
3 | Cash | $626,170.00 | $585,760.00 |
4 | Accounts receivable (net) | 227,840.00 | 208,880.00 |
5 | Inventories | 641,390.00 | 616,790.00 |
6 | Investments | 0.00 | 240,820.00 |
7 | Land | 327,380.00 | 0.00 |
8 | Equipment | 704,290.00 | 554,020.00 |
9 | Accumulated depreciation-equipment | (167,160.00) | (148,930.00) |
10 | Total assets | $2,359,910.00 | $2,057,340.00 |
11 | Liabilities and Stockholders Equity |
|
|
12 | Accounts payable (merchandise creditors) | $424,670.00 | $404,080.00 |
13 | Accrued expenses payable (operating expenses) | 43,080.00 | 52,050.00 |
14 | Dividends payable | 24,920.00 | 19,300.00 |
15 | Common stock, $4 par | 140,000.00 | 102,000.00 |
16 | Paid-in capital: Excess of issue price over parcommon stock | 417,400.00 | 280,600.00 |
17 | Retained earnings | 1,309,840.00 | 1,199,310.00 |
18 | Total liabilities and stockholders equity | $2,359,910.00 | $2,057,340.00 |
Additional data obtained from an examination of the accounts in the ledger for 2016 are as follows:
A. | The investments were sold for $279,890 cash. |
B. | Equipment and land were acquired for cash. |
C. | There were no disposals of equipment during the year. |
D. | The common stock was issued for cash. |
E. | There was a $206,210 credit to Retained Earnings for net income. |
F. | There was a $95,680 debit to Retained Earnings for cash dividends declared. |
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
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