The Fancy Company's comparative balance sheets for 2016 and 2017, and additional information, are presented below. Fancy Company Comparative Balance Sheets December 31, December 31, ASSETS 2017 2016 Cash $ 14,000 $ 9,000 Accounts receivable 52,000 24,000 Inventory 87,000 40,000 Equipment 125,000 100,000 Accumulated depreciation (42,000) (34,000) Prepaid expenses 4,000 2,000 Land -0- 7,000 Building 50,000 -0- Total Assets $290,000 $148,000 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $ 25,000 $ 14,000 Interest payable 8,000 6,000 Taxes payable 37,000 11,000 Short-term note payable 37,000 32,000 Bonds payable 75,000 50,000 Common stock, $10 par 75,000 25,000 Retained earnings 33,000 10,000 Total Liabilities and Shareholders’ Equity $290,000 $148,000 Additional 2017 information: Net income, $31,000 Sold land for gain of $3,000 Paid dividends of $8,000 Issued $50,000 common stock to purchase building Required: Prepare Fancy Company's 2017 statement of cash flows using the indirect method.
The Fancy Company's comparative balance sheets for 2016 and 2017, and additional information, are presented below.
Fancy Company Comparative Balance Sheets |
|||
|
December 31, |
December 31, |
|
ASSETS |
2017 |
2016 |
|
Cash |
$ 14,000 |
$ 9,000 |
|
|
52,000 |
24,000 |
|
Inventory |
87,000 |
40,000 |
|
Equipment |
125,000 |
100,000 |
|
|
(42,000) |
(34,000) |
|
Prepaid expenses |
4,000 |
2,000 |
|
Land |
-0- |
7,000 |
|
Building |
50,000 |
-0- |
|
|
Total Assets |
$290,000 |
$148,000 |
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Accounts payable |
$ 25,000 |
$ 14,000 |
|
Interest payable |
8,000 |
6,000 |
|
Taxes payable |
37,000 |
11,000 |
|
Short-term note payable |
37,000 |
32,000 |
|
Bonds payable |
75,000 |
50,000 |
|
Common stock, $10 par |
75,000 |
25,000 |
|
|
33,000 |
10,000 |
|
|
Total Liabilities and Shareholders’ Equity |
$290,000 |
$148,000 |
|
|
|
|
Additional 2017 information: |
|
|
|
|
Net income, $31,000 |
|
|
|
Sold land for gain of $3,000 |
|
|
|
Paid dividends of $8,000 |
|
|
|
Issued $50,000 common stock to purchase building |
|
|
Required:
Prepare Fancy Company's 2017 statement of

Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images









