Question

DO IT! 12-2b

Prepare statement of cash flows—indirect method.

(LO 2), AP

Alex Company reported the following information for 2017.

ALEX COMPANY Comparative Balance Sheets December 31
Assets	2017	2016	Change Increase/Decrease
Cash	$ 59,000 	$ 36,000 	$ 23,000 Increase
Accounts receivable	62,000 	22,000 	 40,000 Increase
Inventory	44,000 	-0-	 44,000 Increase
Prepaid expenses	6,000 	4,000 	2,000 Increase
Land	55,000 	70,000 	15,000 Decrease
Buildings	200,000 	200,000 	 -0-
Accumulated depreciation—buildings	(21,000)	(14,000)	7,000 Increase
Equipment	183,000 	68,000 	115,000 Increase
Accumulated depreciation—equipment	(28,000)	(10,000)	18,000 Increase
Totals	$560,000 	$376,000 
Liabilities and Stockholders' Equity
Accounts payable	$ 43,000 	$ 40,000 	$  3,000 Increase
Accrued expenses payable	-0-	10,000 	10,000 Decrease
Bonds payable	100,000 	150,000 	50,000 Decrease
Common stock ($1 par)	230,000 	60,000 	170,000 Increase
Retained earnings	187,000 	116,000 	71,000 Increase
Totals	$560,000 	$376,000 

ALEX COMPANY Income Statement For the Year Ended December 31, 2017
Sales revenue		$941,000
Cost of goods sold	$475,000
Operating expenses	231,000
Interest expense	12,000
Loss on disposal of equipment	2,000	720,000
Income before income taxes		221,000
Income tax expense		65,000
Net income		$156,000

Additionalinformation:

1.Operating expenses include depreciation expense of$40,000.

2.Land was sold at its book value for cash.

3.Cash dividends of $85,000 were declared and paid in 2017.

4.Equipment with a cost of $166,000 was purchased for cash.Equipment with a cost of $51,000 and a book value of $36,000 wassold for $34,000 cash.

5.Bonds of $50,000 were redeemed at their face value forcash.

6.Common stock ($1 par) of $170,000 was issued for cash.

Use this information to prepare a statement of cash flows usingthe indirect method. Answer the following questions:

a) Cash Flow from Operating Activities

b) Cash Flow from Investing Activities

c) Cash Flow from Financing Activities

I need the statement of cash flows for the Operating,Investingand Financing activities