Question: make a statement of cash flows for the year ended December 31, 2017, using the indirect method. A comparative statement of financial position for Mann
make a statement of cash flows for the year ended December 31, 2017, using the indirect method.
A comparative statement of financial position for Mann Company appears below:
MANN COMPANY
Comparative Statement of Financial Position
Dec. 31, 2017Dec. 31, 2016
Assets
Equipment60,00032,000
Accumulated depreciationequipment(20,000)(14,000)
Long-term investments-0-18,000
Prepaid expenses6,0009,000
Inventory25,00018,000
Accounts receivable18,00014,000
Cash33,00010,000
Total assets122,00087,000
Equity and Liabilities
Share capital-ordinary40,00023,000
Retained earnings28,00010,000
Bonds payable37,00047,000
Accounts payable17,0007,000
Total equity and liabilities122,00087,000
additional information :
1.Net income for the year ending December 31, 2017 was33,000.
2.Cash dividends of15,000 were declared and paid during the year.
3.Long-term investments that had a cost of18,000 were sold for14,000.
4.Sales for 2017 were120,000.
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