This information is for Williams Corporation for the year ended December 31, 2017.

Cash received from lenders	$20,000
Cash received from customers	50,000
Cash paid for new equipment	28,000
Cash dividends paid	8,000
Cash paid to suppliers	16,000
Cash balance 1/1/17	12,000

Instructions

(a)

Prepare the 2017 statement of cash flows for Williams Corporation.

(b)

Suppose you are one of Williams' creditors. Referring to the statement of cash flows, evaluate Williams' ability to repay its creditors.