Reference no: EM132476708
The following are comparative balance sheets for Mitch Company.
MITCH COMPANY
Comparative Balance Sheets
December 31
Assets 2017 2016
Cash $ 68,000 $ 22,000
Accounts receivable 88,000 76,000
Inventory 167,000 189,000
Land 80,000 100,000
Equipment 260,000 200,000
Accumulated depreciation-equipment (66,000) (32,000)
Tota l$597,000 $555,000
Liabilities and Stockholders' Equity
2017 2016
Accounts payable $ 39,000 $ 43,000
Bonds payable 150,000 200,000
Common stock ($1 par) 216,000 174,000
Retained earnings 192,000 138,000
Total $597,000 $555,000
Additional information:
- Net income for 2017 was $93,000.
- Depreciation expense was $34,000.
- Cash dividends of $39,000 were declared and paid.
- Bonds payable amounting to $50,000 were redeemed for cash $50,000.
- Common stock was issued for $42,000 cash.
- No equipment was sold during 2017.
- Land was sold for its book value.
Question 1: Make a statement of cash flows for 2017 using the indirect method. Identify phases of product life cycle