Cash Flow Assignment Instuctions Complete the statement of c

Cash Flow Assignment Instuctions: Complete the statement of cash fiows for 2017 using the indirect method Here is a comparative balance sheet for Joe Compan JOE COMPANY Comparative Balance Sheet 31-Dec Assets Cash Accounts receivable 2017 2016 68,000.00 22,000.00 189,000.00 100,000.00 200,000.00 32,000.00 260,000.00 66,000.00 597,000.00 Equipment Accumulated De ciation Liabilities and Stockholders\' equit Accounts pavable Bonds payable Common stock (S1 par Retained earnings Total 47,000.00 192,000.00 597.000.00 174,000.00 134,000.00 $555,000.00 Additional information: 1 Net income for 2017 was $93,000 2. Cash dividends of 35,000 were declared and paid 3. Bonds payable amounting to $50,000 were redeemed for cash $50,000. 4. Common stock was issued for $42,000 cash 5. No equipment was sold dur 2017

Solution

Statement of cash flow : Indirect method :

Cash flow from operating activities
Net income	93000
Adjustment to reconcile net income
Depreciation exp	34000
Increase account payable	(9000)
Decrease inventory	19000
Decrease account payable	(8000)
Net cash flow from operating activities		129000
Cash flow from investing activities
Sales of land	20000
Purchase of equipment	(60000)
Net cash flow from investing activities		(40000)
Cash flow from financing activities
Redeem bonds payable	(50000)
Issue common stock	42000
Dividend paid	(35000)
Net cash flow from financing activities		(43000)
Net cash flow		46000
Beginning cash		22000
Ending cash		68000