ES Practice Do Itl Review 1 Metlock, Inc. reported the following information for 2017. Metlock, Inc. Comparative Balance Sheets December 31 Change Assets Cash 2017 2016 Increase/Decrease $16,980 Increase 39,740 Increase 44,300 Increase 1,990 Increase 14,770 Decrease $53,070 $36,090 21,880 61,620 44,300 5,980 54,830 udy Inventony Prepaid expenses Land Buildings Accumulated depreciation-buildings (20,910) (13,940) 6,970 Increase Equipment Accumulated depreciation-equipment(27,950 (10,070) 17,880 Increase 3,990 69,600 198,720 198,720 0- 182,270 68,670 113,600 Increase $551,930 $374,940 Totals Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock ($1 par) Retained earnings $42,780 $40,020 9,920 149,570 59,490 79,410 115,940 $551,930 $374,940 $2,760 Increase 9,920 Decrease 50,440 Decrease 171,120 Increase 63,470 Increase 99,130 230,610 Totals Metlock, Inc. Income Statement For the Year Ended December 31, 2017 932,780 Sales revenue Cost of goods sold Operating expenses Interest expense $473,550 230,980 12.010 Metlock, Inc. Income Statement For the Year Ended December 31, 2017 $932,780 Sales revenue Cost of goods sold Operating expenses Interest expense Loss on disposal of equipment Income before income taxes Income tax expense Net income $473,550 230,980 12,010 2,010 718,550 '-214,230 65,330 $148,900 Additional information: 1. Operating expenses include depreciation expense of $39,740 2. Land was sold at its book value for cash. 3. Cash dividends of $85,430 were declared and paid in 2017. 4 Equipment with a cost of $164,510 was purchased for cash. Equipment with a cost of $50,910 and a book value of 5 Bonds of $50,440 were redeemed at their face value for cash 6. Common stock ($1 par) of $171,120 was issued for cash. Use this information to prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash $36,020 was sold for $34,010 cash. flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Metlock, Inc Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to Metlock, Inc. Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to Metlock, Inc. Statement of Cash Flows-Indirect Method December 31, 2017 For the Year Ended December 31, 2017 For the Quarter Ended December 31, 2017 Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Accrued Expenses Payable Decrease in Inventory Decrease in Prepaid Expenses Depreciation Expense Gain on Disposal of Equipment Increase in Accounts Payable Increase in Accounts Receivable Increase in Accrued Expenses Payable Increase in Inventory Increase in Prepaid Expenses Loss on Disposal of Equipment Net Income Payment of Dividends Purchase of Equipment Redemption of Bonds Sale of Common Stock Sale of Equipment Sale of Land