VELO COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash Accounts receivable Inventory Land Equipment Accumulated depreciation-equipment Total $72,800 86,400 170,200 72,800 260,000 (66,500) $595,700 $33,300 71,300 186,700 101,600 200,000 (33,800) $559,100 Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings $35,000 150,800 215,200 194,700 $595,700 $47,200 203,600 173,000 135,300 $559,100 Total Additional information: 1. Net income for 2017 was $102,000. 2. Cash dividends of $42,600 were declared and paid. 3. Bonds payable amounting to $52,800 were redeemed for cash $52,800. 4. Common stock was issued for $42,200 cash. 5. No equipment was sold during 2017, but land was sold at cost. Prepare a statement of cash flows for 2017 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g.-15, 000, or in parenthesis e.g. (15,000).) VELO COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 V Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Depreciation Expense Increase in Accounts Receivable Decrease in Inventory Decrease in Accounts Payable