Weeks Inc. follows ASPE and is currently preparing its statement of cash flows. The condensed comparative statement of financial position and income statement (statements not in proper form) for Weeks as of December 31, 2016, are as follows:

WEEKS INC.

Statement of Financial Position

December 31,

2016 2015

Cash $ 32,160 $ 20,000

Accounts receivable 80,000 58,000

Merchandise inventory 260,400 250,000

Prepaid expenses 6,000 7,000

Plant assets 452,000 502,000

Less: Accumulated amortization plant assets (120,000) (125,000)

Total assets $710,560 $712,000

Accounts payable $69,000 $115,000

Salaries payable 20,000 10,000

Unearned revenue 53,710 72,000

Dividends payable 5,000 -

Interest payable 17,000 15,000

Bonds payable 135,000 100,000

Total liabilities 299,710 312,000

Common shares 300,000 280,000

Retained earnings 110,850 120,000

Total shareholders equity 410,850 400,000

Total liabilities and shareholders equity $710,560 $712,000

WEEKS INC.

Income Statement

for the Year Ended December 31, 2016

Sales $1,235,000

Cost of merchandise sold 722,000

Gross margin 513,000

Expenses

Salary expense 320,000

Interest expense 26,500

Other expenses 8,150

Depreciation expense 25,000

Loss on sale of assets 12,500 392,150

Income before tax 120,850

Income tax expense 24,000

Net income $ 96,850

The following is additional information about Weekss transactions during the year ended December 31, 2016:

Plant assets with a net book value of $40,000 were sold in the year. Plant assets were purchased for cash.

Weeks issued common shares and additional bonds at face value for cash.

The only changes in retained earnings were for net income and dividends.

Required

Prepare an entire statement of cash flows for Weeks Inc. for the year ended December 31, 2016, using the indirect method.

Calculate the following cash flows for Weeks Inc. for 2016:

Cash received from customers

WEEKS INC. Statement of Financial Position- December 31, 2016 32,160 Cash Accounts receivable 80,000 Merchandise inventory 260,400 Prepaid expenses 6,000 Plant assets 452,000 Less: Accumulated amortization plant assets 120,000 Total assets 710,56 $69,000 Accounts payable Salaries payable 20,000 Unearned revenue 53,710 Dividends payable 5,000 Interest payable 17,000 Bonds payable 135,000 Total liabilities 299,710 Common shares 300,000 Retained earnings 110,850 Total shareholders' equity 410,850 Total liabilities and shareholders' equity 710,56 WEEKS INC. Income Statement for the Year Ended December 31, 2016 $1,235,000 Sales Cost of merchandise sold 722,000- Gross margin 513,000- Expenses Salary expense 320,0 Interest expense 26,500 Other expenses 8,150- Depreciation expense 25,000 Loss on sale of assets 12,500 392,150- Income before tax 120,850- Income tax expense 24,000- Net income 96,85 2015 20,000- 58,000- 250,000- 7,000- 502,000- 125,000 712,000- $115,000 10,000- 72,000- 15,000- 100,000- 312,000- 280,000- 120,000- 400,000- 712,000