Reference no: EM131744270

Question: Selected financial information for the Bravo-Zulu Company for the fiscal year ended December 31, 2016 is as follows:

Net Income:                                           $122,500

Depreciation Expense:                                 50,000

Purchases of plant assets:                         125,000

Disposals of plant assets:                            50,000

Gain on Disposal of plant assets:                    5,000

Accounts receivable decreased:                     2,500

Accounts payable decreased:                        4,000

Interest expense:                                        5,000

Income tax expense:                                    2,500

Additionally, Bravo-Zulu issued stock in exchange for an outstanding note payable of $72,500. The cash balance on January 1, 2016 was $25,000. The January 1, 2016 balance for Retained Earnings was $250,000 and the December 31, 2016 balance for Retained Earnings was $342,500. Use this information to prepare Bravo-Zulu Company's Statement of Cash Flows for the year ended December 31, 2016 using the indirect method.