The statement of cash flows for the year ended December 31, 2017, and other data for Bradley Corporation are shown below:

Additional data:
a. Bradley's Dividends receivable account decreased by $2,000 during the year.
b. The Machinery account, net of accumulated depreciation, increased by $100,000 during the year. The only transaction involving Machinery, other than depreciation and the purchase shown in the statement above, was the write-off on May 15, 2017, of obsolete machinery that had a book value of $8,000.
c. Accounts receivable increased by $40,000 during 2017. The Allowance account increased by $4,000. There were no write-offs of uncollectible accounts.
d. Salaries payable at the beginning of the year were $6,000; at the end of the year, $10,000.
e. Inventories decreased $12,000 during 2017.
f. Taxes payable increased $6,000 during the year.
g. The investments that were sold had a book value of $30,000.
Required:
On the basis of the above data, prepare Bradley Corporation's single-step income statement for the year ended December 31, 2017.

Transcribed Image Text:

Cash flows from operating activities Cash collections from customers Dividends received Cash outflows for 375,000 10,000 Merchandise Salaries Taxes Other operating expenses (120,000) (55,000) (25,000) (25,000) Net cash provided by operating activities 160,000 Cash flows from investing activities: Sales of investments 40,000 (150,000) Purchased machinery Net cash used by investing activities (110,000) Cash flows from financing activities Issue of capital stock 50,000 100,000 Net increase in cash