Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 17

Statement of cash flows-indirect method
The comparative balance sheet of Del Ray Enterprises Inc. at December 31, 2016 and 2015, is as follows:

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. The mortgage note payable was not due until 2018 but the terms permitted earlier payment without penalty.
e. 10,000 shares of common stock were issued at $20 for cash.
f. Cash dividends declared and paid, $153,600
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.