Statement of cash flow (indirect method)

AZTEC TRUCKING CORP
Comparative Balance Sheet
December 31, 2016 and 2015
	ASSETS		2016		2015
	Current assets
	Cash		$ 505,091		$ 40,130
	Accounts receivable		375,000		445,000
	Inventories		150,000		227,870
	Prepaid expenses		35,000		25,125
	Total current assets		$1,065,091		$ 738,125
	Property, plant & equip.
	Land		$ 400,000		$ 400,000
	Equipment		140,000		215,000
			$ 540,000		$ 615,000
	Less: Accumulated depreciation		(80,000)		(85,000)
	Total property, plant & equipment		$ 460,000		$ 530,000
	Total assets		$1,525,091		$1,268,125
	LIABILITIES
	Current liabilities
	Accounts payable		$ 39,373		$ 32,995
	Dividends payable		$ 30,000		$ 20,000
	Unearned revenue		$ 58,700		$ 25,130
	Total current liabilities		$ 128,073		$ 78,125
	Long-term liabilities
	Notes payable, Net		100,000		400,000
	Bonds payable, Net		111,518		-
	Total liabilities		$ 339,591		$ 478,125
	STOCKHOLDERS' EQUITY
	Common Stock and APIC		810,000		610,000
	Retained earnings		375,500		180,000
	Total stockholders' equity		$1,185,500		$ 790,000
	Total Liabilities and equity		$1,525,091		$1,268,125

Additional information about transactions and events occurring in 2016 follows:

1. Dividends of $50,000 were declared during the year.

2. On January 1, 2016, the company issued 10 year, $100,000, 12% bonds at a market rate of 10%. Interest on the bonds is paid annually on December 31.

3. On June 30, 2016, the company sold equipment for a $10,000 gain. The equipment was purchased on June 30, 2014 for $75,000. It was being depreciated using straight-line with no salvage value over a 10 year useful life.

4. The notes payable on the books at January 1, 2016 are interest-bearing. A portion of these notes payable were paid down during the year. Interest expense on all notes payable totaled $8,000 for the year.

5. Cash receipts of $40,000 for shipments that were not made until 2017 were mistakenly recorded as revenue and included in net income. This error has not been corrected in the balance sheet above, but it must be corrected to produce a statement of cash flows.

6. Net Income for the period totaled $245,500. Cost of Goods Sold for the period totaled $40,800.

(if you use your financial calculator, it becomes difficult to give partial credit, so be sure to indicate what you entered into your calculator to make your calculations)

Using the financial statement data from the previous two pages, prepare a complete statement of cash flows, including any required supplemental disclosures, using the INDIRECT method.