Chapter 23, Problem 17E

To determine

Statement of cash flows: It represents net cash flow available after taking into consideration operating, financing, and investing expenses for a given financial year.

Indirect method: Indirect method is the most widely used method to compute cash (used) provided by operating activities. Under this method net cash flow is determined by adding back noncash expense and losses to net income and deducting all noncash income and gains from net income.

Balance sheet: Represents financial position of a particular firm at that date; it also shows what are the assets owned and liabilities incurred by the company at that date.

To prepare: To prepare a statement of cash flows (Indirect method).

Given Information:

Assets	Amount ($)	Liabilities	Amount ($)
Cash	8,500	Current liabilities	15,000
Current assets other than cash	29,000	Long-term notes payable	25,500
Investments	20,000	Bonds payable	25,000
Plant assets (net)	67,500	Common stock	75,000
Land	40,000	Retained earnings	24,500
	165,000		165,000

To determine

• (B)

To prepare: To prepare a condensed Balance sheet.