Condensed financial data of Gorni Company appear below: GORNI COMPANY Comparative Balance Sheet December 31 2017...

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Condensed financial data of Gorni Company appear below: GORNI COMPANY Comparative Balance Sheet December 31 2017 2016 Assets Cash $ 70,000 82,000 120,000 $ 35,000 Accounts receivable 53,000 132,000 Inventories Prepaid expenses 19,000 25,000 65,000 250,000 (60,000) $500,000 Investments 80,000 Plant assets 310,000 Accumulated depreciation (65,000) $616,000 Total Accounts payable Accrued expenses payable Bonds payable Liabilities and Stockholders' Equity $ 85,000 22,000 $ 75,000 24,000 130,000 150,000 Common stock 245,000 170,000 Retained earnings 134,000 S616,000 81,000 S500,000 Total GORNI COMPANY Income Statement For the Year Ended December 31, 2017 Sales $480,000 Less: Cost of goods sold Operating expenses (excluding depreciation) Depreciation expense $290,000 60,000 17,000 Income taxes 15,000 Interest expense Loss on disposal of plant assets 13,000 8,000 403,000 $ 77.000 Net income Additional information: 1. New plant assets costing $85,000 were purchased for cash in 2017. 2. Old plant assets costing $25,000 were sold for $5,000 cash when book value was $13,000. 3. Bonds with a face value of $20,000 were converted into $20,000 of common stock. 4. A cash dividend of $24,000 was declared and paid during the year. 5. Accounts payable pertain to merchandise purchases. Instructions Prepare a statement of cash flows for the year using the indirect method. Condensed financial data of Gorni Company appear below: GORNI COMPANY Comparative Balance Sheet December 31 2017 2016 Assets Cash $ 70,000 82,000 120,000 $ 35,000 Accounts receivable 53,000 132,000 Inventories Prepaid expenses 19,000 25,000 65,000 250,000 (60,000) $500,000 Investments 80,000 Plant assets 310,000 Accumulated depreciation (65,000) $616,000 Total Accounts payable Accrued expenses payable Bonds payable Liabilities and Stockholders' Equity $ 85,000 22,000 $ 75,000 24,000 130,000 150,000 Common stock 245,000 170,000 Retained earnings 134,000 S616,000 81,000 S500,000 Total GORNI COMPANY Income Statement For the Year Ended December 31, 2017 Sales $480,000 Less: Cost of goods sold Operating expenses (excluding depreciation) Depreciation expense $290,000 60,000 17,000 Income taxes 15,000 Interest expense Loss on disposal of plant assets 13,000 8,000 403,000 $ 77.000 Net income Additional information: 1. New plant assets costing $85,000 were purchased for cash in 2017. 2. Old plant assets costing $25,000 were sold for $5,000 cash when book value was $13,000. 3. Bonds with a face value of $20,000 were converted into $20,000 of common stock. 4. A cash dividend of $24,000 was declared and paid during the year. 5. Accounts payable pertain to merchandise purchases. Instructions Prepare a statement of cash flows for the year using the indirect method.

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Answer Solution GORNI COMPANY Statement of cash flows For the year ended December 31 2017 Cash flows ... View the full answer