Problem - Nichol Corporation's comparative balance sheets are presented below.
NICHOL CORPORATION Comparative Balance Sheets December 31
2016 2015
Cash $ 12,200 $ 17,700
Accounts receivable 25,200 22,300
Investments 25,000 16,000
Equipment 60,000 70,000
Accumulated depreciation (14,000) (10,000)
Total $108,400 $116,000
Accounts payable $ 14,600 $11,100
Bonds payable 10,000 30,000
Common stock 50,000 45,000
Retained earnings 33,800 29,900
Total $108,400 $116,000
Additional information:
1. Net income was $17,300. Dividends declared and paid were $13,400.
2. Equipment which cost $10,000 and had accumulated depreciation of $2,200 was sold for $3,800.
3. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation.
Instruction - Prepare a statement of cash flows for 2015 using the indirect method.