4. Presented below are the financial statements of Bonita Industries.

Bonita Industries
Comparative Balance Sheets
December 31

Assets

2017

2016

Cash

$ 40,600

$ 23,200

Accounts receivable

23,200

16,240

Inventory

32,480

23,200

Property, plant, and equipment

69,600

90,480

Accumulated depreciation

(37,120

)

(27,840

)

Total

$128,760

$125,280

Liabilities and Stockholders’ Equity

Accounts payable

$ 22,040

$ 17,400

Income taxes payable

8,120

9,280

Bonds payable

19,720

38,280

Common stock

20,880

16,240

Retained earnings

58,000

44,080

Total

$128,760

$125,280


Bonita Industries
Income Statement
For the Year Ended December 31, 2017

Sales revenue

$280,720

Cost of goods sold

203,000

Gross profit

77,720

Selling expenses

$20,880

Administrative expenses

6,960

27,840

Income from operations

49,880

Interest expense

3,480

Income before income taxes

46,400

Income tax expense

9,280

Net income

$ 37,120


Additional data:

1.

Depreciation expense was $20,300.

2.

Dividends declared and paid were $23,200.

3.

During the year equipment was sold for $9,860 cash. This equipment cost $20,880 originally and had accumulated depreciation of $11,020 at the time of sale.

Prepare a statement of cash flows using the indirect method.

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