Use the Whitbey Group Inc. data from Problem 17-3A.
In Problem 17-3A

Required
1. Prepare the 2017 cash flow statement by the indirect method.
2. Evaluate the 2017 cash flow for this company.

Transcribed Image Text:

WHITBEY GROUP INC Balance Sheet August 31,2017 and 2016 2017 2016 Current assets Cash and cash equivalents Accounts receivable Interest receivable Inventories Prepaid expenses $ 47,000 415,000 6,000 993,000 17,000 1,009,000 401,000 $2,888,000 $ 156,000 431,000 9,000 899,000 22,000 Plant and equipment, net Land Total assets Current liabilities 200,000 $2,654,000 Accounts payable Interest payable Wages payable Lease liabilities $ 114,000 63,000 71,000 181,000 73,000 $179,000 67,000 14,000 187,000 38,000 Income tax payable Long-term liabilities Notes payable Shareholders' equity Common shares Retained earnings 450,000 650,000 1,411,000 525,000 $2,888,000 1,223,000 296,000 $2,654,000 Total liabilities and shareholders' equity WHITBEY GROUP INC. Income Statement For the Year Ended August 31, 2017 Revenues Sales revenue $4,380,000 17,000 4,397,000 Interest revenue Total revenues Expenses Cost of goods sold Salaries expense Amortization expense Other operating expenses Interest expense Income tax expense $1,952,000 814,000 253,000 497,000 246,000 169,000 Total expenses 3,931,000 $ 466,000 Net income