Reference no: EM131773850

Question - Prepare a statement of cash flows for year ended December 31, 2016.

Bravo-Zulu Company had net income of $1,225,000.

Accounts receivable decreased by $25,000.

Accounts payable decreased by $40,000.

Depreciation was $500,000.

Purchases of plant assets were for $1,250,000 cash, and sold plant assets for $500,000 cash, which resulted in a $50,000 gain.

Stock was issued in exchange for an outstanding note payable of $725,000.

Dividends of $300,000 were paid to shareholders.

Cash balance on Dec 31, 2015 was $250,000 and cash balance on Dec 31, 2016 was $860,000.