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)).

Question

exercise 12-7

Shown below are comparative balance sheets for Sandhill Company.

Sandhill Company
Comparative Balance Sheets
December 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)). 

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