Reference no: EM131590288

Problem - Nichol Corporation's comparative balance sheets are presented below.

NICHOL CORPORATION Comparative Balance Sheets December 31

                                                      2016                     2015  

Cash                                               $ 12,200                $ 17,700

Accounts receivable                          25,200                   22,300

Investments                                     25,000                   16,000

Equipment                                        60,000                   70,000

Accumulated depreciation                  (14,000)                 (10,000)

Total                                                $108,400                $116,000

Accounts payable                              $ 14,600                 $11,100

Bonds payable                                  10,000                    30,000

Common stock                                 50,000                    45,000

Retained earnings                             33,800                    29,900

Total                                               $108,400                 $116,000

Additional information:

1. Net income was $17,300. Dividends declared and paid were $13,400.

2. Equipment which cost $10,000 and had accumulated depreciation of $2,200 was sold for $3,800.

3. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation.

Instruction - Prepare a statement of cash flows for 2015 using the indirect method.