The following information is available for the corporation for the year ended December 31, 2016: Net income 20,000 Depreciation expense 30,000 Issuance of common stock
The following information is available for the corporation for the year ended December 31, 2016:
| Net income | |
| | |
| Issuance of common stock for cash | | | 25,000 |
| Payment of cash dividends | | | 14,000 |
| Purchase of land by issuing bonds payable | | | |
| Redemption of bonds payable at carrying (book) value | | | |
| Proceeds from the sale of long-term investment at book value | | | |
| Collection of principal on long-term loan to a supplier | | | 15,000 |
| Acquisition of equipment for cash | | | |
In addition, the following information is available from the comparative balance sheet for Modre at the end of 2015 and 2016:
| | 2015 | 2016 |
| cash | 14,000 | 67,000 |
| accounts recievable | 15,000 | 20,000 |
| prepaid insurance | 13,000 | 17,000 |
| total current assets | 42,000 | 104,000 |
| accounts payable | 19,000 | 30,000 |
| salaries payable | 7,000 | 4,000 |
| total current liabilities | 26,000 | 34,000 |
Prepare statement of cash flows for the year ended December 31, 2016 using the indirect method.
