The comparative balance sheets and income statement for Vernon Company follow Balance Sheets As of December 31 2017 2016 Assets Cash $ 23,356 $ 2,515 Accounts receivable 2,463 1,478 Inventory 6,187 5,800 Equipment 20,596 43,676 Accumulated depreciation Equipment (9,226 ) (18,059 ) Land 18,373 11,253 Total assets $ 61,749 $ 46,663 Liabilities and equity Accounts payable (inventory) $ 2,481 $ 4,008 Long term debt 2,982 6,815 Common stock 22,800 11,500 Retained earnings 33,486 24,340 Total liabilities and equity $ 61,749 $ 46,663 Income Statement For the Year Ended December 31, 2017 Sales revenue $ 35,210 Cost of goods sold (13,956 ) Gross margin 21,254 Depreciation expense (3,382 ) Operating income 17,872 Gain on sale of equipment 500 Loss on disposal of land (80 ) Net income $ 18,292 Additional Data During 2017, the company sold equipment for $18,785 it had originally cost $30,500 Accumulated depreciation on this equipment was $12,215 at the time of the sale Also, the company purchased equipment for $7,420 cash The company sold land that had cost $4,180 This land was sold for $4,100, resulting in the recognition of a $80 loss Also, common stock was issued in exchange for title to land that was valued at $11,300 at the time of exchange Paid dividends of $9,146 Required Prepare a statement of cash flows using the indirect method (Amounts to be deducted and cash outflows should be indicated by a minus sign ) Prepare a statement of cash flows using the indirect method (Amounts to be deducted and cash outflows should be indicated by a minus sign ) Prepare a statement of cash flows using the indirect method (Amounts to be deducted and cash outflows should be indicated by a minus sign ) Prepare a statement of cash flows using the indirect method (Amounts to be deducted and cash outflows should be indicated by a minus sign ) Prepare a statement of cash flows using the indirect method (Amounts to be deducted and cash outflows should be indicated by a minus sign ) Prepare a statement of cash flows using the indirect method (Amounts to be deducted and cash outflows should be indicated by a minus sign )

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Posted on Sep 04, 2024

The comparative balance sheets and income statement for Vernon Company follow:

Balance Sheets
As of December 31
	2017			2016
Assets
Cash	$	23,356		$	2,515
Accounts receivable		2,463			1,478
Inventory		6,187			5,800
Equipment		20,596			43,676
Accumulated depreciation Equipment		(9,226	)		(18,059	)
Land		18,373			11,253
Total assets	$	61,749		$	46,663
Liabilities and equity
Accounts payable (inventory)	$	2,481		$	4,008
Long-term debt		2,982			6,815
Common stock		22,800			11,500
Retained earnings		33,486			24,340
Total liabilities and equity	$	61,749		$	46,663

Additional Data

During 2017, the company sold equipment for $18,785; it had originally cost $30,500. Accumulated depreciation on this equipment was $12,215 at the time of the sale. Also, the company purchased equipment for $7,420 cash.
The company sold land that had cost $4,180. This land was sold for $4,100, resulting in the recognition of a $80 loss. Also, common stock was issued in exchange for title to land that was valued at $11,300 at the time of exchange.
Paid dividends of $9,146.

Required

Prepare a statement of cash flows using the indirect method. (Amounts to be deducted and cash outflows should be indicated by a minus sign.)