Prepare the Statement of Cash Flows - indirect method. Fiscal year 2017. Income Statement:
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Prepare the Statement of Cash Flows - indirect method.

Fiscal year

2017.

           Income Statement:

                       Net Income                            $300,000

                       Depreciation Expense              50,000

                       Gain on Sale of Plant Assets     10,000

                       Interest Expense                           500

           Balance Sheet - 12/31/17: Increase (Decrease)

                       Accounts Payable                  ($4,000)

                       Plant Assets - Purchased       250,000

                       Plant Assets - Disposals        (100,000)

                 

Cash Balance - 12/31/2016: $50,000

Common Stock exchanged for outstanding Long Term Notes Payable of $125,00

Dividends paid were $25,000

 

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