prepare a statement for cash flow for the year ended december 31,2017. comparati

Question

prepare a statement for cash flow for the year ended december 31,2017.

comparative balance sneenortalley "' STANLEY'S COMPANY Comparative Balance Sheet Dec 31, 2016 Dec. 31. 20117 Assets Cash Accounts receivable Inventory Land Equipment Accumulated depreciation-equipment 73,000 87,000 170,000 72,000 260,000 $22,000 76,000 191,000 100,000 200,000 (32,000) $557000 (66,000) Total assets $596,000 Liabilities and Stockholders Equity Accounts payable Bonds payable Common stock Retained eamings $37,000 150,000 216,000 193,000 $596,000 S 47,000 210,000 174,000 126,000 Total liabilities and stockholders' equity Additional information 1. Net income for the year ending December 31, 2017 was $100,000. 2. Cash dividends of $33,000 were declared and paid during the year 3. Land was sold at cost. 4. Bonds payable were redeemed for cash $60,000. 5. Common stock was issued for $42,000 cash. 6. Additional Equipment was purchased for $110,000 cash. 7. $50,000 Equipment, with a book value of $30,000, was sold for $36,000 during 2017 Instructions: Prepare a statement of cash flows for the year ended December 31, 2017. Note: Write clearly

Explanation / Answer

Statement for cash flow for the year ended december 31,2017

Cash flow from operating activities Net income $1,00,000 depreciation $54,000 gain on sale -$6,000 Accounts receivables -$11,000 Inventory $21,000 Accounts payable -$10,000 Cash flow from operating activities $1,48,000 Cash flow from investing activities Purchase of equipment -$1,10,000 Sale of equipment $36,000 Sale of land $28,000 cash used in investing activities -$46,000 Cash flow from financing activities Bonds redeemed -$60,000 Common stock issued $42,000 dividends paid -$33,000 Cash flow from financing activities -$51,000 Net increaase in cash $51,000 Opening cash balance $22,000 Ending cash balance $73,000

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