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

1		Dec. 31, 2016	Dec. 31, 2015
2	Assets
3	Cash	$145,630.00	$180,110.00
4	Accounts receivable (net)	224,520.00	241,890.00
5	Merchandise inventory	321,860.00	299,730.00
6	Prepaid expenses	12,550.00	10,220.00
7	Equipment	655,090.00	537,200.00
8	Accumulated depreciation-equipment	(170,220.00)	(132,040.00)
9	Total assets	$1,189,430.00	$1,137,110.00
10	Liabilities and Stockholders Equity
11	Accounts payable (merchandise creditors)	$250,110.00	$237,190.00
12	Mortgage note payable	0.00	335,380.00
13	Common stock, $10 par	75,000.00	25,000.00
14	Paid-in capital: Excess of issue price over parcommon stock	460,000.00	320,000.00
15	Retained earnings	404,320.00	219,540.00
16	Total liabilities and stockholders equity	$1,189,430.00	$1,137,110.00

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, $339,360
B.	Depreciation reported on the income statement, $82,730
C.	Equipment was purchased at a cost of $162,440 and fully depreciated equipment costing $44,550 was discarded, with no salvage realized.
D.	The mortgage note payable was not due until 2018 but the terms permitted earlier payment without penalty.
E.	10,000 shares of common stock were issued at $19 for cash.
F.	Cash dividends declared and paid, $154,580

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

Labels and Amount Descriptions

Cash paid for dividends

Cash paid for equipment

Cash paid for merchandise

Cash paid for purchase of equipment

Cash paid for purchase of land

Cash paid to retire mortgage note payable

Cash received from customers

Cash received from sale of common stock

December 31, 2016

Decrease in cash

Decrease in inventory

Decrease in accounts payable

Decrease in accounts receivable

Decrease in prepaid expenses

Depreciation

For the Year Ended December 31, 2016

Gain on disposal of equipment

Gain on sale of investments

Increase in accounts payable

Increase in accounts receivable

Increase in cash

Increase in inventory

Increase in prepaid expenses

Loss on disposal of equipment

Loss on sale of investments

Net cash flow from financing activities

Net cash flow from investing activities

Net cash flow from operating activities

Net cash flow used for financing activities

Net cash flow used for investing activities

Net cash flow used for operating activities

Net income

Net loss

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

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