Question - The March 2016 and 2017 comparative Balance Sheet for UMUC Corporation is shown below: UMUC Corporation Comparative Balance Sheets 31-Mar Increase 2017 2016 (Decrease) Current assets: Cash $28,300 $8,700 $19,600 Accounts receivable 60,000 33,200 $26,800 Inventories 69,200 61,400 $7,800 Prepaid expenses 1,500 2,800 ($1,300) Long-term investment 11,000 6,500 $4,500 Equipment, net 74,200 73,800 $400 Land 43,100 95,600 ($52,500) $287,300 $282,000 $5,300 Current liabilities: Notes payable, short-term $14,200 $19,200 ($5,000) Accounts payable 44,100 42,600 $1,500 Income tax payable 14,200 16,800 ($2,600) Accrued liabilities 23,900 28,500 ($4,600) Interest payable 5,100 9,200 ($4,100) Salary payable 3,500 2,800 $700 Long-term note payable 57,000 104,400 ($47,400) Common stock 68,000 52,600 $15,400 Retained earnings -9,100 5,900 ($15,000) $220,900 $282,000 ($61,100)
Additional information: Transaction data for the year ended June 30, 2017
a. Net income $ 66,400
b. Depreciation expense on equipment 13,700
c. Purchased long-term investment 4,500
d. Sold land for cash 45,400 Loss on sale of land 7,100
e. Acquired equipment by issuing long-term note payable 14,100
f. Paid long-term note payable 61,500
g. Received cash for issuance of common stock 10,400
h. Paid cash dividends 15,000
i. Paid short-term note payable by issuing common stock 5,000
Requirement - Prepare the statement of cash flows of UMUC Corporation for the year ended March 31, 2017 using the indirect method to report operating activities.