Exercise 17-8

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Here are comparative balance sheets for Velo Company.

VELO COMPANY Comparative Balance Sheets December 31
Assets		2017			2016
Cash		$72,600			$33,100
Accounts receivable		85,500			70,600
Inventory		169,500			187,200
Land		72,800			100,200
Equipment		260,700			200,900
Accumulated depreciationequipment		(65,800	)		(34,000	)
Total		$595,300			$558,000
Liabilities and Stockholders Equity
Accounts payable		$35,200			$47,400
Bonds payable		151,300			204,000
Common stock ($1 par)		216,900			175,600
Retained earnings		191,900			131,000
Total		$595,300			$558,000

Additional information:

1.		Net income for 2017 was $103,300.
2.		Cash dividends of $42,400 were declared and paid.
3.		Bonds payable amounting to $52,700 were redeemed for cash $52,700.
4.		Common stock was issued for $41,300 cash.
5.		No equipment was sold during 2017, but land was sold at cost.

Prepare 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).)

VELO COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities 103300 Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Decrease in Inventory Increase in Accounts Receivable loll II Decrease in Accounts Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of Equipment O! Sale of Land Net Cash Used by Investing Activities Cash Flows from Financing Activities > Payment of Cash Dividends Redemption of Bonds > Issuance of Common Stock All I o Net Cash Used by Financing Activities Net Decrease in Cash Cash at Beginning of Period > Cash at End of Period