70.2K
Verified Solution
Link Copied!
Additional information:
1. Net income for the year ending December 31, 2017, was $35,000.
2. Cash dividends of $15,000 were declared and paid during the year.
3. Long-term investments that had a cost of $17,000 were sold for $14,000.
4. No equipment was sold during 2017.
Instructions: Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method.
A comparative balance sheet for Rocker Company appears below:
ROCKER COMPANY
Comparative Balance Sheet
| Assets | Dec. 31, 2017 | Dec. 31, 2016 |
| Cash | $34,000 | $11,00 |
| Accounts receivable | 18,000 | 13,000 |
| Inventory | 25,000 | 17,000 |
| Prepaid expenses | 6,000 | 9,000 |
| Long-term investments | 0 | 17,000 |
| Equipment | 60,000 | 33,000 |
| Accumulated depreciation - equipment | (20,000) | (15,000( |
| Total assets | $123,000 | $85,000 |
| Liabilities and Stockholders' Equity | | |
| Accounts payable | $17,000 | $7,000 |
| Bonds payable | 36,000 | 45,000 |
| Common stock | 40,000 | 23,000 |
| Retained earnings | 30,000 | 10,000 |
| Total liabilities and stockholders' Equity | $123,000 | $85,000 |
Answer & Explanation
Solved by verified expert
