2016 Chapter 12 - Statement of Cash Flows A comparative balance sheet for the ABC Corporation is presented below: ABC CORPORATION Balance Sheets 2017 Assets Cash $ 37,000 Accounts receivable (net) 80,000 Prepaid insurance 22,000 Land 18,000 Equipment 70,000 Accumulated depreciation (20,000) Total Assets $207.000 Liabilities and Stockholders' Equity Accounts payable $ 12,000 Bonds payable 27,000 Common stock 140,000 Retained earnings 28.000 Total liabilities and stockholders' equity $207.000 S 31,000 60,000 17.000 40,000 60,000 (13.000 $195.000 $ 6,000 19.000 115,000 55.000 $195.000 Additional information: (See journal entries on the last page for assistance) 1. Net loss for 2017 is $12,000. Net sales for 2017 are $250,000. 2. Cash dividends of $15,000 were declared and paid in 2017. 3. Land was sold for cash at a loss of $2,000. This was the only land transaction during the year. 4. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash. 5. $12,000 of bonds were retired during the year at carrying (book) value. 6. Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $25,000 Instructions: Using the Indirect Method, prepare in proper financial statement format a statement of cash flows for the year ended December 31, 2017. Use the table to prepare the statement. Do not change the formatting of the table; it is designed to help you fit the contents of the statement into the table. Chapter 12 - Statement of Cash Flows Food for Thought... What should be some of the journal entries from the Additional Information Section: 3. Cash Loss on Sale of Land Land Land (beginning balance) 40,000 (sale of land) (ending balance) 4. Cash Accumulated Depreciation Equipment (sale of equipment) Accumulated Depreciation 13,000 (beginning balance) (depreciation expense) (ending balance) Equipment (beginning balance) 60,000 (acquisition of equipment via issuance of C/S) (ending balance) (sale of equipment) 6. Equipment Common Stock Common Stock 115,000 (beginning balance) (acquisition of equipment) (ending balance)