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CAN THIS BE DONE IN A NEAT FORM !!!! Thank you! Question #3 (5 points):...

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Accounting

CAN THIS BE DONE IN A NEAT FORM !!!! Thank you!

Question #3 (5 points): The following information is available for the Aunt Rhea Corporation:

Aunt Rhea Corporation

Income Statement

For the Year Ended December 31, 2017

Service Revenue $ 900,000

Operating Expenses 700,000

Operating Income $ 200,000

Gain on Investment Sale 10,000

Net income Before Income Taxes $ 210,000

Loss on Sale of Investments 25,000

$ 185,000

Income Tax Expense 90,000

Net Income $ 95,000

The following partial balance sheet information is also available for 2015 and 2014:

2017 2016

Cash $ 655,000 $ 435,000

Accounts Receivable 120,000 100,000

Merchandise Inventory 40,000 50,000

Supplies 10,000 20,000

L.T. Investments 35,000 80,000

Accounts Payable 70,000 60,000

Income Taxes Payable 10,000 15,000

In addition, the following transactions took place during 2017:

1. Common stock was issued for $100,000 cash.

2. Long-term investments were sold for $55,000.

3. Cash dividends of $80,000 were paid.

4. The operating expenses included depreciation of $30,000.

Required: Prepare in good form, a cash flow statement for 2017 using the indirect method for Aunt Rhea Corporation.

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