The comparative balance sheet of Del Ray Enterprises Inc. at December 31, 2016 and 2015, is as follows

Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2016 are as follow:
a. Net income, $332,000
b. Depreciation reported on the income statement, $83,400
c. Equipment was purchased at a cost of $162,800 and fully depreciated equipment costing $44,800 was discarded, with no salvage realized.
d. The mortgage note payable was not due until 2018 but the terms permitted earlier payment without penalty.
e. 10,000 shares of common stock were issued at $20 for cash.
f. Cash dividends declared and paid, $153,600

Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

Transcribed Image Text:

Dec. 31, 2016 Dec. 31, 2015 Assets Cash Merchandise inventory .. Prepaid expenses . . . Equipment.. . Accumulated depreciation-equipment S 146,600 179,800 242,000 299,200 9,600 537,000 170,800) (132200 224,600 321,600 13,400 655,000 ._... Total assets Liabilities and Stockholders'Equity 74,000 470,000 396,200 336,000 24,000 320,000 217,800 S1.135.400 Paid-in capital: Excess of issue price over par-common stock..... Retained earnings...