a Prepare a statement of cash flows for 2017 Show amounts th

(a)

Prepare a statement of cash flows for 2017. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Metlock Corporation’s balance sheet at the end of 2016 included the following items. Current assets (Cash $82,000) $236,810 Current liabilities $151,810 Land 32,710 Bonds payable 101,810 Buildings 121,810 Common stock 182,710 Equipment 92,710 Retained earnings 46,710 Accum. depr.-buildings (31,810 )     Total $483,040 Accum. depr.-equipment (11,000 ) Patents 41,810     Total $483,040 The following information is available for 2017. 1. Net income was $54,680. 2. Equipment (cost $21,810 and accumulated depreciation $9,810) was sold for $11,810. 3. Depreciation expense was $5,810 on the building and $10,810 on equipment. 4. Patent amortization was $2,500. 5. Current assets other than cash increased by $29,000. Current liabilities increased by $14,810. 6. An addition to the building was completed at a cost of $28,810. 7. A long-term investment (Equity) in stock was purchased for $16,000. 8. Bonds payable of $52,710 were issued. 9. Cash dividends of $30,000 were declared and paid. 10. Treasury stock was purchased at a cost of $11,000.

Solution

a.the following is the cash flow statement:

ending cash balance = net cash flow from all acitivities + beginning cash balance =>$38,510 + $82,000 => $120,510.