The Barone Corporation reported the following income statement for 2016 and comp

Question

The Barone Corporation reported the following income statement for 2016 and comparative balance sheet for 2016 and 2015 , along with transaction data for 2016 :

Prepare Barone ?Corporation's statement of cash flows for the year ended December? 31, 2016. Format cash flows from operating activities by the indirect method. ?(Use parentheses or a minus sign for numbers to be subtracted. If a box is not used in the? statement, leave the box? empty; do not select a label or enter a? zero.)

Data Table Barone Corporation Comparative Balance Sheet December 31, 2016 and 2015 Increase 2016 2015 (Decrease) Assets Current Assets Cash Accounts Receivable Merchandise Inventory $ 77,000 S 10,000 $ 67,000 (5,000) 7,000 20,000 39,000 25,000 32,000 Long-term Assets 33,000 (21,700) (20,700) 1,000) S 238,000 S 137,000S 101,000 Plant Assets 123,700 90,700 Accumulated Depreciation-Plant Assets Total Assets Liabilities Current Liabilities Accounts Payable Accrued Liabilities Income Tax Payable $ 43,000 S 30,000 $ 13,000 2,000 10,000 (8,000) 14,000 14,000 Long-term Liabilities 83,000 52,000 31,000 Bonds Payable Total Liabilities 142,000 106,000 36,000 Stockholders' Equity 40,000 34,000 (6,000) 9,000) 65,000 $ 238,000 $ 137,000 $ 101,000 27,000 Common Stock, no par Retained Earnings Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity 67,000 44,000 (15,000) 96,000 10,000 31,000 Print Done

Explanation / Answer

Barone Corporation Statement of Cash Flows year Ended December 31,2016 Cash Flows from operating Activities Net Income 45000 Adjustment to reconcile Net income to Net cash Provided by operating Activities Add: depreciation 14000 Add: loss on disposal of plant assets 6000 Add: decrease in accounts receivable 5000 Less: increase in inventory -7000 Add: increase in accounts payable 13000 Less: Decrease in Accrued liabilites -8000 23000 Net cash flows from operating activites 68000 Cash flow from investing activities purchase of equipment -120000 sale of equipment 68000 Net cash flow from investing activities -52000 cash flow from financing activites cash payment of dividends -11000 issuance of bonds payable to borrow cash 45000 issue of common stock 26000 cash paid for purchase of treasury stock -9000 51000 Net cash flow from financing activities 67000 Beginning cash balance 10000 Ending cash balance 77000

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