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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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