Question - Prepare a statement of cash flows for year ended December 31, 2016.
Bravo-Zulu Company had net income of $1,225,000.
Accounts receivable decreased by $25,000.
Accounts payable decreased by $40,000.
Depreciation was $500,000.
Purchases of plant assets were for $1,250,000 cash, and sold plant assets for $500,000 cash, which resulted in a $50,000 gain.
Stock was issued in exchange for an outstanding note payable of $725,000.
Dividends of $300,000 were paid to shareholders.
Cash balance on Dec 31, 2015 was $250,000 and cash balance on Dec 31, 2016 was $860,000.