exercise 12-7 Shown below are comparative balance sheets for Sandhill Company. Sandhill CompanyComparative Balance SheetsDecember 31 Assets 2017 2016 Cash $ 211,208 $ 68,332 Accounts receivable 273,328 236,056 Inventory 518,702 587,034 Land 248,480 310,600 Equipment 807,560 621,200 Accumulated depreciation—equipment (204,996 ) (99,392 ) Total $1,854,282 $1,723,830 Liabilities and Stockholders’ Equity Accounts payable $ 121,134 $ 133,558 Bonds payable 465,900 621,200 Common stock ($1 par) 670,896 540,444 Retained earnings 596,352 428,628 Total $1,854,282 $1,723,830 Additional information: 1. Net income for 2017 was $288,858. 2. Depreciation expense was $105,604. 3. Cash dividends of $121,134 were declared and paid. 4. Bonds payable amounting to $155,300 were redeemed for cash $155,300. 5. Common stock was issued for $130,452 cash. 6. No equipment was sold during 2017. 7. Land was sold for its book value. Prepare a statement of cash flows for 2017 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000, or in parenthesis e.g. (45,000)).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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exercise 12-7

Shown below are comparative balance sheets for Sandhill Company.

Sandhill Company Comparative Balance Sheets December 31
Assets	2017		2016
Cash	$ 211,208		$ 68,332
Accounts receivable	273,328		236,056
Inventory	518,702		587,034
Land	248,480		310,600
Equipment	807,560		621,200
Accumulated depreciation—equipment	(204,996	)	(99,392	)
Total	$1,854,282		$1,723,830
Liabilities and Stockholders’ Equity
Accounts payable	$ 121,134		$ 133,558
Bonds payable	465,900		621,200
Common stock ($1 par)	670,896		540,444
Retained earnings	596,352		428,628
Total	$1,854,282		$1,723,830

Additional information:

1.		Net income for 2017 was $288,858.
2.		Depreciation expense was $105,604.
3.		Cash dividends of $121,134 were declared and paid.
4.		Bonds payable amounting to $155,300 were redeemed for cash $155,300.
5.		Common stock was issued for $130,452 cash.
6.		No equipment was sold during 2017.
7.		Land was sold for its book value.

Prepare a statement of cash flows for 2017 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000, or in parenthesis e.g. (45,000)).

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