Reference no: EM132089214
Question: The comparative balance sheet of Del Ray Enterprises Inc. at December 31, 2016 and 2015, is as follows:
1 Dec. 31, 2016 Dec. 31, 2015
2 Assets
3 Cash $146,600.00 $179,800.00
4 Accounts receivable (net) 224,600.00 242,000.00
5 Merchandise inventory 321,600.00 299,200.00
6 Prepaid expenses 13,400.00 9,600.00
7 Equipment 655,000.00 537,000.00
8 Accumulated depreciation-equipment (170,800.00) (132,200.00)
9 Total assets $1,190,400.00 $1,135,400.00
10 Liabilities and Stockholders' Equity
11 Accounts payable (merchandise creditors) $250,200.00 $237,600.00
12 Mortgage note payable 0.00 336,000.00
13 Common stock, $10 par 74,000.00 24,000.00
14 Paid-in capital: Excess of issue price over par-common stock 470,000.00 320,000.00
15 Retained earnings 396,200.00 217,800.00
16 Total liabilities and stockholders' equity $1,190,400.00 $1,135,400.00 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2016 are as follows:
A. Net income, $332,000
B. Depreciation reported on the income statement, $83,400
C. Equipment was purchased at a cost of $162,800 and fully depreciated equipment costing $44,800 was discarded, with no salvage realized.
D. 10,000 shares of common stock were issued at $20 for cash.
E. The mortgage note payable was not due until 2018 but the terms permitted earlier payment without penalty.
F. Cash dividends declared and paid, $153,600
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.