Solution-Prepare a statement of cash flows

Prepare a statement of cash flows

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Reference no: EM131586434

Question - Here are comparative balance sheets for Velo Company.

VELO COMPANY Comparative Balance Sheets December 31
Assets	2017	2016
Cash	$73,500	$32,700
Accounts receivable	85,600	71,100
Inventory	169,500	187,200
Land	73,300	100,800
Equipment	260,200	200,600
Accumulated depreciation-equipment	(66,200)	(33,500)
Total	$595,900	$558,900
Liabilities and stockholders' Equity
Accounts payable	$35,200	$47,300
Bonds payable	151,600	203,100
Common stock ($ 1 par)	216,600	175,500
Retained earnings	192,500	133,000
Total	$595,900	$558,900

Additional information -

1. Net Income for 2017 was $104,000

2. Cash dividends of $45,300 were declared and paid.

3. Bonds payable amounting to $51,500 were redeemed for cash $51,500.

4. Common stock was issued for $41,100 cash,

5. No equipment was sold during 2017, but land was sold at cost.

Required - Prepare a statement of cash flows for 2017 using the indirect method.

Reference no: EM131586434

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Prepare a statement of cash flows

Reference no: EM131586434

Reference no: EM131586434

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