Brooks Company\'s comparative balance sheets for December 31 of 2017 and 2016 ar

Question

Brooks Company's comparative balance sheets for December 31 of 2017 and 2016 are shown below. Assets Dec 31, 2017 Dec 31, 2016 Increase Decrease $90,500 S39,500$51,000 1,900 Cash Accounts Receivable (net) Inventory Prepaid Expenses Plant Assets Accumulated Depreciation 12,900 29,900 6,000 98,000 11,000 32,500 9,800 S 2,600 3,800 76,00022.000 (27,100) (20,400) 6,700 Total Assets S 210,200148,400 Liabilities and Stockholders' Equity 4,100 $17,300 13,200 4,200 7,000 Accounts Payable Wages Payable Income Tax Payable Bonds Payable Common Stock, $10 par Additional Paid-in Capital Retained Earnings Treasury Stock 2,000 6,800 42,000 75,000 43,000 28,000 (3,900 2,200 200 65.000 10.000 28,00015,000 31,000 3,000 3,900 Total Liabilities and Stockholders' Equity S 210,200148,400 The following information is taken from Brooks's financial records . During 2017, equipment was sold for $23,500. The equipment had an original cost of $31,000 and a current book value of $24,000 . 1,000 shares of common stock were issued for $25 per share. . Depreciation expense for 2017 was $13,700 . Net income for the year was $13,000 Required: Prepare the financing activities section of the statement of cash flows for Brooks Company, indirect method

Explanation / Answer

Cash flows from financing activities Proceeds from issuance of common stock (1000*25) $   25,000 Proceeds from issuance of bonds $   42,000 Cash paid for purchase of treasury stock $   (3,900) Payment of dividend (-3000-13000) $ (16,000) Net cash provided by financing activities $ 47,100

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