Answer Happy

Ex1: Comparative balance sheet for Manama Company appears below: Dec.31,2016 Dec.31,2015 Assets: Cash $11,500 $5,000 Accounts Receivable 9,000 7,000 Inventory 13,500 9,000 Prepaid expense 3,000 4,500 Long-term investments -0- 9,000 Equipment 30,000 16,000 Accumulated depreciation-equipment (9,000) (7,000) Total Assets $58,000 $43,500 Liabilities & stockholder's Equity Accounts payable $8,500 $3,500 Bonds payable (long-term) 18,500 23,500 Common Stock 20,000 11,500 Retained Earnings 11,000 5,000 Total Liabilities & stockholder's Equity $58,000 $43,500 Additional information: - Net income for the year ending December 31,2016 was $12,000. - Received cash for the sale of long-term investment that had a cost of $9,000, yielding a $1,000 loss. Depreciation expense for 2016 was $2,000. All sale and purchases of inventory are on account (or credit). The only change affecting retained earnings are net income and cash dividends paid.
Ex1: Comparative balance sheet for Manama Company appears below: Dec.31,2016 Dec.31,2015 Assets: Cash $11,500 $5,000 Accounts Receivable 9,000 7,000 Inventory 13,500 9,000 Prepaid expense 3,000 4,500 Long-term investments -0- 9,000 Equipment 30,000 16,000 Accumulated depreciation-equipment (9,000) (7,000) Total Assets $58,000 $43,500 Liabilities & stockholder's Equity Accounts payable $8,500 $3,500 18,500 23,500 Bonds payable (long-term) Common Stock 20,000 11,500 Retained Earnings 11,000 5,000 Total Liabilities & stockholder's Equity $58,000 $43,500 Additional information: - Net income for the year ending December 31,2016 was $12,000. - Received cash for the sale of long-term investment that had a cost of $9,000, yielding a $1,000 loss. - Depreciation expense for 2016 was $2,000. All sale and purchases of inventory are on account (or credit). - The only change affecting retained earnings are net income and cash dividends paid. Required: Prepare a statement of cash flows for the year ended December 31,2016, using the indirect method.