In 2017, the company declared and paid $ 32,000 cash dividend. 2- Bonds were issued at...

 

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In 2017, the company declared and paid $ 32,000 cash dividend. 2- Bonds were issued at face value for $ 130,000 in cash. 3- Equipment costing $ 180,000 was purchased for cash. 4- Equipment costing $ 20,000 was sold for $ 17,000 cash when the book value of the equipment was $ 18,000. 5- Share capital - ordinary of $ 60,000 was issued to acquire land. Required: Prepare a statement of cash flows using the indirect method. GAMAL COMPANY Comparative Balance Sheets December 31, 2017, 2016 2017 $191,000 12,000 170,000 6,000 140,000 Assets Cash Accounts Receivable Inventory Prepaid expenses Land Equipment Accumulated depreciation - equipment Total Liabilities and Stockholder's Equity Accounts Payable Accrued expenses payable Income taxes Payable Bonds Payable Share capital - ordinary Retained earnings Total Revenues Cost of goods sold Operating exp. (excluding depreciation) 160,000 (16,000) $ 663,000 GAMAL COMPANY Income Statement for the year ended 31, 2017 Depreciation expense Loss on sale of store equipment Income before income taxes Income tax expense Net Income $ 52.000 15,000 12,000 130,000 360,000 94,000 663,000 $ 660,000 176,000 18,000 1,000 2016 $ 159,000 15,000 160,000 8,000 80,000 -0- -0- $ 422,000 $ 60,000 20,000 -0- -0- 300,000 42,000 422,000 $ 975,000 855,000 120,000 36,000 $ 84,000 In 2017, the company declared and paid $ 32,000 cash dividend. 2- Bonds were issued at face value for $ 130,000 in cash. 3- Equipment costing $ 180,000 was purchased for cash. 4- Equipment costing $ 20,000 was sold for $ 17,000 cash when the book value of the equipment was $ 18,000. 5- Share capital - ordinary of $ 60,000 was issued to acquire land. Required: Prepare a statement of cash flows using the indirect method. GAMAL COMPANY Comparative Balance Sheets December 31, 2017, 2016 2017 $191,000 12,000 170,000 6,000 140,000 Assets Cash Accounts Receivable Inventory Prepaid expenses Land Equipment Accumulated depreciation - equipment Total Liabilities and Stockholder's Equity Accounts Payable Accrued expenses payable Income taxes Payable Bonds Payable Share capital - ordinary Retained earnings Total Revenues Cost of goods sold Operating exp. (excluding depreciation) 160,000 (16,000) $ 663,000 GAMAL COMPANY Income Statement for the year ended 31, 2017 Depreciation expense Loss on sale of store equipment Income before income taxes Income tax expense Net Income $ 52.000 15,000 12,000 130,000 360,000 94,000 663,000 $ 660,000 176,000 18,000 1,000 2016 $ 159,000 15,000 160,000 8,000 80,000 -0- -0- $ 422,000 $ 60,000 20,000 -0- -0- 300,000 42,000 422,000 $ 975,000 855,000 120,000 36,000 $ 84,000