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Wolff Companys income statement and comparative balance sheets follow:

Cash dividends of $29,000 were declared and paid during 20X7. Also in 20X7, PPE was purchased for cash, and bonds payable were issued for cash. Bond interest is paid semiannually on June 30 and December 31. Accounts payable relate to merchandise purchases.

1. Compute the change in cash that occurred during 20X7.
2. Prepare and 20X7 statement of cash flows using the indirect method.

WOLFF COMPANY Income Statement For Year Ended December 31, 2017 $635,000 Sales..... Cost of goods sold. Wages expense. Insurance expense. Depreciation expense. Interest expense... Income tax expense. Net income... $430,000 86,000 8,000 17,000 9,000 29,000 579,000 $ 56,000 WOLFF COMPANY Balance Shoot Dec. 31, 2017 Dec. 31, 2016 Assets Cash.... Accounts receivable.. Inventory... Prepaid insurance. PPE..... Accumulated depreciation.. Total assets... $ 11,000 41,000 90,000 5,000 250.000 (68,000) $329,000 $ 5,000 32,000 60,000 7,000 195,000 (51,000) $248,000 WOLFF COMPANY Income Statement For Year Ended December 31, 2017 $635,000 Sales..... Cost of goods sold. Wages expense. Insurance expense. Depreciation expense. Interest expense... Income tax expense. Net income... $430,000 86,000 8,000 17,000 9,000 29,000 579,000 $ 56,000 WOLFF COMPANY Balance Shoot Dec. 31, 2017 Dec. 31, 2016 Assets Cash.... Accounts receivable.. Inventory... Prepaid insurance. PPE..... Accumulated depreciation.. Total assets... $ 11,000 41,000 90,000 5,000 250.000 (68,000) $329,000 $ 5,000 32,000 60,000 7,000 195,000 (51,000) $248,000 WOLFF COMPANY Income Statement For Year Ended December 31, 2017 $635,000 Sales..... Cost of goods sold. Wages expense. Insurance expense. Depreciation expense. Interest expense... Income tax expense. Net income... $430,000 86,000 8,000 17,000 9,000 29,000 579,000 $ 56,000 WOLFF COMPANY Balance Shoot Dec. 31, 2017 Dec. 31, 2016 Assets Cash.... Accounts receivable.. Inventory... Prepaid insurance. PPE..... Accumulated depreciation.. Total assets... $ 11,000 41,000 90,000 5,000 250.000 (68,000) $329,000 $ 5,000 32,000 60,000 7,000 195,000 (51,000) $248,000 WOLFF COMPANY Income Statement For Year Ended December 31, 2017 $635,000 Sales..... Cost of goods sold. Wages expense. Insurance expense. Depreciation expense. Interest expense... Income tax expense. Net income... $430,000 86,000 8,000 17,000 9,000 29,000 579,000 $ 56,000 WOLFF COMPANY Balance Shoot Dec. 31, 2017 Dec. 31, 2016 Assets Cash.... Accounts receivable.. Inventory... Prepaid insurance. PPE..... Accumulated depreciation.. Total assets... $ 11,000 41,000 90,000 5,000 250.000 (68,000) $329,000 $ 5,000 32,000 60,000 7,000 195,000 (51,000) $248,000

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