Here are comparative balance sheets for Velo Company. VELO COMPANY Comparative B
ID: 2536623 • Letter: H
Question
Here are comparative balance sheets for Velo Company.
VELO COMPANY
Comparative Balance Sheets
December 31
Assets
2017
2016
Cash
$ 73,200
$ 32,700
Accounts receivable
85,600
70,500
Inventory
169,800
186,600
Land
74,000
100,600
Equipment
260,500
200,100
Accumulated depreciation—equipment
(65,800
)
(33,700
)
Total
$597,300
$556,800
Liabilities and Stockholders’ Equity
Accounts payable
$ 35,400
$ 47,300
Bonds payable
151,400
203,000
Common stock ($1 par)
217,500
173,200
Retained earnings
193,000
133,300
Total
$597,300
$556,800
Additional information:
1. Net income for 2017 was $104,100.
2. Cash dividends of $44,400 were declared and paid.
3. Bonds payable amounting to $51,600 were redeemed for cash $51,600.
4. Common stock was issued for $44,300 cash.
5. No equipment was sold during 2017, but land was sold at cost.
Prepare a statement of cash flows for 2017 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000, or in parenthesis e.g. (15,000).)
VELO COMPANY
Statement of Cash Flows
$
Adjustments to reconcile net income to
$
$
Explanation / Answer
Cash flow statement
for the period ended 31 dec 2017
Cash flow statement
for the period ended 31 dec 2017
cash flow from operaing activity Net income 104100 adjustment to reconcile net income to cash flow depreciation [65800-33700] 32100 increase in receivable (15100) decrease in inventory 16800 decrease in accounts payable (11900) 21900 net cash provided by operating activity 126000 cash flow from investing activity saleof land [100600-74000] 26600 purchase of equipment [260500-200100] (60400) cash used by investing activity (33800) cash flow from financing activity redemption of bond payable (51600) dividend paid (44400) common stock issued 44300 net cash used by financing activity (51700) net increase /(decrease)in cash 40500 beginning cash 32700 cash at end 73200Related Questions
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