To prepare the statement of cash flows, accountants for Powers Art Gallery Inc. have summarized 2017 activity in two accounts as follows:

Requirement
Prepare Powers's statement of cash flows for the year ended December 31, 2017, using the direct method to report operating activities. Also, prepare the accompanying schedule of noncash investing and financing activities. Powers's 2017 income statement and selected balance sheet data follow.

Transcribed Image Text:

Cash Beginning balance 87,100 Payments of operating expenses6,100 Issuance of common shares60,800Payment of long-term note payable 78,900 10,400 8,000 101,600 1,800 67,500 21,800 79,900 Receipts of dividends Collection of loan Sale of long-term investments Receipts of interest Collections from customers 1,900 18,500 9,900 12,200 308,100 Repurchase of common shares Payment of inc Payments on accounts payabl Payments of dividends Payments of salaries and wage Payments of interest Purchase of equipment ome tax Ending balance 82,500 Common Shares Beginning balance Issuance for cash Issuance to acquire land Issuance to retire long-ternm 103,500 60,800 62,100 note payable Ending balance 21,100 247,500 Power Art Gallery Inc. Income Statement For the Year Ended December 31, 2017 2 Revenues and gains Sales revenue Interest revenue Dividend revenue Gain on sale of investments 291,800 12,200 1,900 700 306,600 Total revenues and gains 8 Expenses: Cost of goods sold Salary and wage expense Depreciation expense Other operating expense Interest expense Income tax expense $ 103,600 66,800 20,900 44,700 24,100 2,600 Total expenses 262,700 $ 43,900 16 Net income Power Art Gallery Inc. Selected Balance Sheet Data 2017 Increase (Decrease) 2 3 Current assets: $ (4,600) (16,300) 5,700 (1,900) (18,500) 9,200) 59,000 62,100 Cash and cash Accounts receivable Inventories 4 alents 6 7 Prepaid e 8 Loan receivable 9 Long-term investments 10 11 Land pment, net 12 Current liabilities: 13 14 Interest payable 15 16 17 Income tax payable 18 Long-term note payable 19 Share capital 20 Retained earnings 21 Accounts payable $ 7,700 2,300 (700) (3,300) (5,400) (100,000) 133,600 42,100 Sala Other accrued liabilities