Question: Selected financial information for the Bravo-Zulu Company for the fiscal year ended December 31, 2016 is as follows:
Net Income: $122,500
Depreciation Expense: 50,000
Purchases of plant assets: 125,000
Disposals of plant assets: 50,000
Gain on Disposal of plant assets: 5,000
Accounts receivable decreased: 2,500
Accounts payable decreased: 4,000
Interest expense: 5,000
Income tax expense: 2,500
Additionally, Bravo-Zulu issued stock in exchange for an outstanding note payable of $72,500. The cash balance on January 1, 2016 was $25,000. The January 1, 2016 balance for Retained Earnings was $250,000 and the December 31, 2016 balance for Retained Earnings was $342,500. Use this information to prepare Bravo-Zulu Company's Statement of Cash Flows for the year ended December 31, 2016 using the indirect method.