Question - Following is a statement of cash flows (indirect method) for Hartford, Inc., for the year ended December 31, 2017. Also shown is a partially completed comparative balance sheet as of December 31, 2017 and 2016:
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HARTFORD, INC Statement of Cash Flows For the year Ended December 31, 2017
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Cash Flows from Operating Activities:
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Net income
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$10,800
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Add (deduct) items not affecting cash:
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Depreciation expense
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54,000
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Decrease in accounts receivable
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27,600
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Increase in Inventory
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(8,400)
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Increase in notes payable
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14,400
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Decrease in accounts payable
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(7,200)
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Net cash provided by operating activities
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$91,200
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Cash Flows from Investing Activities:
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Purchase of equipment
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$(60,000)
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Purchase of buildings
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(57,600)
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Net cash used by investing activities
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$(117,600)
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Cash Flows from Financing Activities:
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Proceeds from short-term debt
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$6,000
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Cash used for retirement of long-term debt
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(30,000)
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Proceeds from issuance of common stock
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12,000
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Payment of cash dividends on common stock
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(3,600)
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Net cash used by financing activities
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$(15,600)
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Net decrease in cash for the year
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$(42,000)
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Required -
1. Complete the December 31, 2017 and 2016, balance sheets.
2. Complete the statements of changes in related earning for the year ended December 31, 2017.