The comparative balance sheets for Rothlisberger Company as

The comparative balance sheets for Rothlisberger Company as of December 31 are presented below.

ROTHLISBERGER COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $59,900 $46,500 Accounts receivable 43,400 62,100 Inventory 148,100 145,600 Prepaid expenses 15,000 24,600 Land 96,500 130,300 Buildings 198,700 198,700 Accumulated depreciation—buildings (56,200 ) (31,200 ) Equipment 230,300 156,600 Accumulated depreciation—equipment (44,300 ) (36,200 ) Total $691,400 $697,000 Liabilities and Stockholders’ Equity Accounts payable $46,200 $39,000 Bonds payable 260,000 291,200 Common stock, $1 par 189,500 158,300 Retained earnings 195,700 208,500 Total $691,400 $697,000 Additional information: 1. Operating expenses include depreciation expense of $42,000 and charges from prepaid expenses of $9,600. 2. Land was sold for cash at book value. 3. Cash dividends of $58,100 were paid. 4. Net income for 2017 was $45,300. 5. Equipment was purchased for $95,300 cash. In addition, equipment costing $21,600 with a book value of $12,700 was sold for $5,900 cash. 6. Bonds were converted at face value by issuing 31,200 shares of $1 par value common stock. Prepare a statement of cash flows for the year ended December 31, 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).) ROTHLISBERGER COMPANY Statement of Cash Flows

Solution

Statement of cash flow : Indirect method :