Question

The comparative balance sheets and an income statement for Raceway Corporation follow:
Income Statement
For the Year Ended December 31, 2017
Sales .............. $ 480,000
Cost of goods sold ......... (264,000)
Gross profit ........... 216,000
Operating expenses
Depreciation expense ........ (11,400)
Rent expense ........... (7,000)
Salaries expense .......... (95,200)
Other operating expenses ....... (76,000)
Net income ........... $ 26,400
Other Information
1. Purchased land for $66,000.
2. Purchased new equipment for $62,000.
3. Sold old equipment that cost $66,000 with accumulated depreciation of $56,000 for $10,000 cash.
4. Issued common stock for $30,000.
Required
Prepare the statement of cash flows for 2017 using the indirect method.


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  • CreatedApril 20, 2015
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