The comparative balance sheet of Del Ray Enterprises Inc. at December 31, 2016 and 2015, is as follows:

Question not attempted.

1		Dec. 31, 2016	Dec. 31, 2015
2	Assets
3	Cash	$147,270.00	$180,220.00
4	Accounts receivable (net)	224,490.00	241,070.00
5	Merchandise inventory	321,930.00	299,210.00
6	Prepaid expenses	13,120.00	9,890.00
7	Equipment	655,170.00	536,180.00
8	Accumulated depreciation-equipment	(171,750.00)	(131,210.00)
9	Total assets	$1,190,230.00	$1,135,360.00
10	Liabilities and Stockholders Equity
11	Accounts payable (merchandise creditors)	$249,380.00	$237,500.00
12	Mortgage note payable	0.00	336,240.00
13	Common stock, $10 par	73,000.00	23,000.00
14	Paid-in capital: Excess of issue price over parcommon stock	460,000.00	310,000.00
15	Retained earnings	407,850.00	228,620.00
16	Total liabilities and stockholders equity	$1,190,230.00	$1,135,360.00

Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2016 are as follows:

A.	Net income, $332,260
B.	Depreciation reported on the income statement, $84,950
C.	Equipment was purchased at a cost of $163,400 and fully depreciated equipment costing $44,410 was discarded, with no salvage realized.
D.	10,000 shares of common stock were issued at $20 for cash.
E.	The mortgage note payable was not due until 2018 but the terms permitted earlier payment without penalty.
F.	Cash dividends declared and paid, $153,030

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities

The section of the statement of cash flows that reports the cash transactions affecting the determination of net income.

. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow, if required. In the investing and financing activities section, use a minus sign only to indicate a NET cash outflow for the sectionand enter in the order listed on the Instructions page.

Question not attempted.

Del Ray Enterprises Inc.

Statement of Cash Flows

1	Cash flows from operating activities:
2
3	Adjustments to reconcile net income to net cash flow from operating activities:
4
5	Changes in current operating assets and liabilities:
6
7
8
9
10
11
12	Cash flows from investing activities:
13
14
15
16	Cash flows from financing activities:
17
18
19
20
21
22	Cash at the beginning of the year
23	Cash at the end of the year

Solution

Del Ray Enterprises Inc.

Statement of Cash Flows

1	Cash flows from operating activities:
2
3	Adjustments to reconcile net income to net cash flow from operating activities:
4
5	Changes in current operating assets and liabilities:
6
7
8
9
10
11
12	Cash flows from investing activities:
13
14
15
16	Cash flows from financing activities:
17
18
19
20
21
22	Cash at the beginning of the year
23	Cash at the end of the year