Question: Exercise 12-7 Shown below are comparative balance sheets for Mitch Company. Mitch Company Comparative Balance Sheets December 31 Assets 2017 2016 Cash$68,000 $22,000 Accounts receivable88,000
Exercise 12-7
Shown below are comparative balance sheets for Mitch Company.
Mitch Company
Comparative Balance Sheets
December 31
Assets
2017
2016
Cash$68,000
$22,000
Accounts receivable88,000
76,000
Inventory167,000
189,000
Land80,000
100,000
Equipment260,000
200,000
Accumulated depreciationequipment(66,000
)
(32,000
)
Total$597,000
$555,000
Liabilities and Stockholders' Equity
Accounts payable$39,000
$43,000
Bonds payable150,000
200,000
Common stock ($1 par)216,000
174,000
Retained earnings192,000
138,000
Total$597,000
$555,000
Additional information:
1.Net income for 2017 was $93,000.2.Depreciation expense was $34,000.3.Cash dividends of $39,000were declared and paid.4.Bonds payable amounting to $50,000were redeemed for cash $50,000.5.Common stock was issued for $42,000cash.6.No equipment was sold during 2017.7.Land was sold for its book value.
Show a statement of cash flows for 2017 using the indirect method.(Show amounts that decrease cash flow with either a - sign e.g. -15,000, or in parenthesis e.g. (15,000)).
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
Study Help