Statement of Cash FlowsIndirect Method The following balances are available for Madison Company: ...
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Accounting
Statement of Cash FlowsIndirect Method
The following balances are available for Madison Company:
2017
2016
Cash
$12,000
$10,000
Accounts receivable
10,000
12,000
Inventory
8,000
7,000
Prepaid rent
1,200
1,000
Land
75,000
75,000
Plant and equipment
200,000
150,000
Accumulated depreciation
-75,000
-25,000
233,217.00
232,016.00
Accounts payable
$15,000
$15,000
Income taxes payable
2,500
2,000
Short-term notes payable
20,000
22,500
Bonds payable
75,000
50,000
Common stock
100,000
100,000
Retained earnings
18,700
40,500
$231,200
$230,000
Bonds were issued during 2017 at face value, and plant and equipment were acquired for cash. Depreciation expense for the year was $50,000. A net loss of $21,800 was reported.
Required:
1. Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activities section. Use the minus sign to indicate net loss, cash payments, cash outflows, or decreases in cash.
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