Equipment cost 21770 and accumulated depreciation 9770 was


Question - Indigo Corporation's balance sheet at the end of 2016 included the following items.

Current assets (Cash $82,000) $236,770

Current liabilities $151,770

Land 31,770

Bonds payable 101,770

Buildings 121,770

Common stock 181,770

Equipment 91,770

Retained earnings 45,770

Accum. depr.-buildings (31,770)

Total $481,080

Accum. depr.-equipment (11,000)

Patents 41,770

Total $481,080

The following information is available for 2017.

1. Net income was $55,870.

2. Equipment (cost $21,770 and accumulated depreciation $9,770) was sold for $11,770.

3. Depreciation expense was $5,770 on the building and $10,770 on equipment.

4. Patent amortization was $2,500.

5. Current assets other than cash increased by $29,000. Current liabilities increased by $14,770.

6. An addition to the building was completed at a cost of $28,770.

7. A long-term investment (Equity) in stock was purchased for $16,000.

8. Bonds payable of $51,770 were issued.

9. Cash dividends of $30,000 were declared and paid.

10. Treasury stock was purchased at a cost of $11,000.

Prepare a statement of cash flows for 2017.

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Accounting Basics: Equipment cost 21770 and accumulated depreciation 9770 was
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