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Selected financial information for the Bravo-Zulu Company for the fiscal year ended December 31, 2016 is...

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 Proceeds on disposals of plant assets 25,000 Loss on Disposal of plant assets 7,500 Accounts receivable decreased 2,500 Accounts payable increased 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 $27,000. 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.

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Answer #1

Use this information to prepare Bravo-Zulu Company's Statement of Cash Flows for the year ended December 31, 2016 using the indirect method.

Cash flow from operating activities
Net income 122500
Adjustment to reconcile net income to net cash flow from operating activities
Depreciation expense 50000
Loss on disposal of plant assets 7500
Account receivable decrease 2500
Account payable increase 4000
64000
Net cash flow from operating activities 186500
Cash flow from investing activities
Purchase of plant assets -125000
Proceeds from plant assets 25000
Net cash used in investing activities -100000
Cash flow from financing activities
Dividend paid -30000
Net cash used in financing activities -30000
Net cash flow 56500
Beginning cash 27000
Ending Cash 83500
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