A comparative balance sheet for Kenneth Corporation is presented below:

		December 31
Assets		2017	2016
Cash		$109,500	$33,000
Accounts receivable		123,000	99,000
Inventories		270,000	283,500
Land		106,500	165,000
Equipment		390,000	300,000
Accumulated depreciation-equipment		(103,500)	(63,000)
Total		$895,500	$817,500
Liabilities and Stockholders' Equity
Accounts payable		$51,000	$70,500
Bonds payable		225,000	300,000
Common stock ($1 par)		321,000	246,000
Retained earnings		298,500	201,000
Total		$895,500	$817,500

Additional information:

1. Net income for 2017 was $187,500.

2. Cash dividends of $90,000 were declared and paid.

3. Bonds payable amounting to $75,000 were retired through issuance of common stock.

Prepare a statement of cash flows for 2017 for Kenneth Corporation.

Answer rating: 100% (QA)

Question Answer Kenneth CORPORATION STATEMENT OF CASH FLOWS USING INDIRECT METHOD FOR THE YEAR ... View the full answer