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A comparative balance sheet for Isabella Company appears below:
ISABELLA 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 depreciationequipment (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.
Instructions
Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method.
Answer & Explanation
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