exercise 12-7 Shown below are comparative balance sheets for Sandhill Company. Sandhill CompanyComparative Balance SheetsDecember 31 Assets 2017 2016 Cash $ 211,208 $ 68,332 Accounts receivable 273,328 236,056 Inventory 518,702 587,034 Land 248,480 310,600 Equipment 807,560 621,200 Accumulated depreciation—equipment (204,996 ) (99,392 ) Total $1,854,282 $1,723,830 Liabilities and Stockholders’ Equity Accounts payable $ 121,134 $ 133,558 Bonds payable 465,900 621,200 Common stock ($1 par) 670,896 540,444 Retained earnings 596,352 428,628 Total $1,854,282 $1,723,830 Additional information: 1. Net income for 2017 was $288,858. 2. Depreciation expense was $105,604. 3. Cash dividends of $121,134 were declared and paid. 4. Bonds payable amounting to $155,300 were redeemed for cash $155,300. 5. Common stock was issued for $130,452 cash. 6. No equipment was sold during 2017. 7. Land was sold for its book value. Prepare a statement of cash flows for 2017 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000, or in parenthesis e.g. (45,000)).
exercise 12-7
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Sandhill Company
Comparative Balance Sheets December 31 |
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|---|---|---|---|---|---|---|
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Assets
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2017
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2016
|
||||
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Cash
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$ 211,208
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$ 68,332
|
||||
|
Accounts receivable
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273,328
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236,056
|
||||
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Inventory
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518,702
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587,034
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||||
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Land
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248,480
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310,600
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||||
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Equipment
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807,560
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621,200
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||||
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Accumulated depreciation—equipment
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(204,996
|
)
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(99,392
|
)
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||
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Total
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$1,854,282
|
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$1,723,830
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|
||
|
Liabilities and Stockholders’ Equity
|
||||||
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Accounts payable
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$ 121,134
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$ 133,558
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Bonds payable
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465,900
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621,200
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Common stock ($1 par)
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670,896
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540,444
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||||
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Retained earnings
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596,352
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428,628
|
|
||
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Total
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$1,854,282
|
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$1,723,830
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|
Additional information:
| 1. | Net income for 2017 was $288,858. | |
| 2. | Depreciation expense was $105,604. | |
| 3. | Cash dividends of $121,134 were declared and paid. | |
| 4. | Bonds payable amounting to $155,300 were redeemed for cash $155,300. | |
| 5. | Common stock was issued for $130,452 cash. | |
| 6. | No equipment was sold during 2017. | |
| 7. | Land was sold for its book value. |
Prepare a statement of cash flows for 2017 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000, or in parenthesis e.g. (45,000)).
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