A comparative balance sheet for Rocker Company appears below:   ROCKER COMPANY Comparative Balance Sheet Dec. 31, 2017 Dec. 31, 2016 Assets   Cash $34,000 $11,000 Accounts receivable 18,000 13,000 Inventory 25,000 17,000 Prepaid expenses 6,000 9,000 Long-term investments -0- 17,000 Equipment 60,000 33,000 Accumulated depreciation-equipment (20,000) (15,000) Total assets $123,000 $85,000 Liabilities and stockholders' Equity   Accounts payable $17,000 $7,000 Bonds payable 36,000 45,000 Common stock 40,000 23,000 Retained earnings 30,000 10,000 Total liabilities and stockholders' equity $123,000 $85,000 Additional Information:   1. Net income for the year ending December 31, 2017, was $35,000.   2. Cash dividends of $15,000 were declared and paid during the year.   3. Long-term investments that had a cost of $17,000 were sold for $14,000.   4. Sales for 2017 were $120,000.   Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A comparative balance sheet for Rocker Company appears below:

 

ROCKER COMPANY

Comparative Balance Sheet

Dec. 31, 2017 Dec. 31, 2016

Assets  

Cash $34,000 $11,000

Accounts receivable 18,000 13,000

Inventory 25,000 17,000

Prepaid expenses 6,000 9,000

Long-term investments -0- 17,000

Equipment 60,000 33,000

Accumulated depreciation-equipment (20,000) (15,000)

Total assets $123,000 $85,000

Liabilities and stockholders' Equity  

Accounts payable $17,000 $7,000

Bonds payable 36,000 45,000

Common stock 40,000 23,000

Retained earnings 30,000 10,000

Total liabilities and stockholders' equity $123,000 $85,000

Additional Information:

 

1. Net income for the year ending December 31, 2017, was $35,000.

 

2. Cash dividends of $15,000 were declared and paid during the year.

 

3. Long-term investments that had a cost of $17,000 were sold for $14,000.

 

4. Sales for 2017 were $120,000.

 

Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method.

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