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Instructions: Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method. The

comparative statements of financial position for Amaral Reis Company SA as of December 31 are

presented below:

AMARAL REIS COMPANY SA Comparative Statements of Financial Position December 31
Assets		2017		2016
Land	R	145,000	R	130,000
Equipment		228,000		155,000
Accumulated DepreciationEquipment		-45,000		-35,000
Buildings		200,000		200,000
Accumulated DepreciationBuildings		-60,000		-40,000
Prepaid expenses		18,280		21,000
Inventory		154,550		142,000
Accounts Receivable		46,000		62,000
Cash		62,520		45,000
Total	R	749,350	R	680,000
Equity and Liabilities
Share capital-ordinary, 1 par	R	195,000	R	160,000
Retained earnings		208,000		180,000
Bonds payable		300,000		300,000
Accounts Payable		46,350		40,000
Total	R	749,350	R	680,000

The following transactions occurred during 2017:

Operating expenses include depreciation expense of R$45,500.

Land was sold for cash at book value of R$20,000.

Cash dividends of R$20,000 were paid.

Net income for 2017 was R$54,000.

Equipment was purchased for R$95,000 cash. In addition, equipment costing R$22,000 with a book value of R$12,000 was sold for R$6,000 cash.

Issued 35,000 shares of R$1 par value ordinary shares in exchange for land with a fair value of R$35,000.

Instructions: Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method.

AMARAL REIS COMPANY SA Statement of Cash Flows For the Year Ended December 31, 2017
Cash flows from Operating Activities:
Net cash provided by Operating Activities:
Cash flows from Investing Activities:
Net cash provided by Investing Activities:
Cash flows from Financing Activities:
Net cash provided by Financing Activities:
Net increase/decrease in cash:
Cash at beginning of period:
Cash at end of period:
Note: (if necessary)

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