Here are comparative balance sheets for Velo Company.

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 during 2017, but land was sold at cost.

Instructions

Prepare a statement of cash flows for 2017 using the indirect method.

Transcribed Image Text:

VELO COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $ 63,000 $ 22,000 Accounts receivable 85,000 170,000 75,000 270,000 (66,000) 76,000 189,000 100,000 200,000 (32,000) Inventory Land Equipment Accumulated depreciation-equipment Total $597,000 $555,000 Liabilities and Stockholders' Equity $ 39,000 $ 47,000 Accounts payable Bonds payable Common stock ($1 par) Retained earnings 150,000 216,000 192,000 200,000 174,000 134,000 Total $597,000 $555,000