Question

Weygandt, Accounting Principles, 12e Help System Announcements Exercise 17-8 Your answer is partially correct. Try again. Here are comparative balance sheets for Velo Company. VELO COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash Accounts receivable Inventory Land Equipment Accumulated depreciation equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total $72,700 86,300 169,700 72,200 260,400 (65,700) $595,600 $33,400 71,100 187,500 101,400 199,300 (34,300) $558,400 $35,500 148,300 217,500 194,300 $595,600 $47,500 203,300 172,500 135,100 $558,400 Additional information: 1. Net income for 2017 was $104,100. 2. Cash dividends of $44,900 were dedared and paid. 3. Bonds payable amounting to $55,000 were redeemed for cash $55,000. 4. Common stock was issued for $45,000 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 VELO COMPANY

Answer 1

104100 22000 126100 VELO COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from Operating Activities Net Income Adjustments to reconcile net income to Net cash provided by Operating activities Depreciation Expense 31400 Increase in Accounts Reeivable -15200 Decrease in Inventory 17800 Decrease in Accounts Payable -12000 Net cash provided by Operating Activities Cash flows from Investing Activities Sale of Land 29200 Purchase of Equipment -61100 Net cash used by Investing activities Cash flows from Financing Activities Issuance of Common Stock 45000 Redemption of Bonds -55000 Payment of Cash Dividends -44900 Net Cash used by Financing Activities Net Increase in Cash Cash at beginning of Period Cash at end of Period -31900 -54900 39300 33400 72700