Condensed financial data of Saffordville Company are shown below.

SAFFORDVILLE COMPANY
Comparative Balance Sheets
December 31

Assets 2017 2016
Cash $102,700 $ 33,400
Accounts receivable 60,800 37,000
Inventory 126,900 102,650
Investments 79,500 107,000
Equipment 315,000 205,000
Accumulated depreciationâequipment (44,500) (40,000)
Total $640,400 $445,050
Liabilities and Stockholdersâ Equity
Accounts payable $ 57,700 $ 48,280
Accrued expenses payable 15,100 18,830
Bonds payable 145,000 70,000
Common stock 250,000 200,000
Retained earnings 172,600 107,940
Total $640,400 $445,050

SAFFORDVILLE COMPANY
Income Statement
For the Year Ended December 31, 2017
Sales revenue $297,500
Gain on disposal of plant assets 5,000
302,500
Less:
Cost of goods sold $99,460
Operating expenses, excluding depreciation 19,670
Depreciation expense 30,500
Income tax expense 37,270
Interest expense 2,940 189,840
Net income $112,660

Additional information:

1. New equipment costing $146,000 was purchased for cash during the year.
2. Investments were sold at cost.
3. Equipment costing $36,000 was sold for $15,000, resulting in a gain of $5,000.
4. A cash dividend of $48,000 was declared and paid during the year.

Prepare a statement of cash flows using the indirect method.

The answer is attached

Explanation:

Because of the lots of workings and calculation, the question is solved in excel sheet and attached for ready reference.

Explanation:

The statement of cash flow is given below;

                       SAFFORDVILLE COMPANY

                         CASH FLOW STATEMENT  

Cash flow from operating Activities  

Net Income                                                                                    $112660

Add or subtract that effect net income  

Depreciation                                                        $30500        $30500

Changes in operating Assets & Liabilities  

Cash(102700-33400)                                         $69300  

Accounts receivable(37000-60800)                $-23800  

Inventory(102650-126900)                               -$24250  

Equipment(205000-315000)                            -$110000  

Investments(107000-79500)                            $27500  

Accounts Payable(57000-48280)                    $8720  

Accrued expenses payable(15100-18830)      -$3730  

Bond payable(145000-70000)                         $75000  

Common stock(250000-200000)                   $50000  

Retained earnings(172600-107940)                 $64660  

New equipment purchased in cash               -$146000  

(assume that which is not considered

in given Balance sheet)

Cash Dividend                                                   -$48000        -$60600

(assume that which is not

considered in the given

Balance sheet)

Net Cash Balance as on 31.12.2017                                        $82560

probably not? : o

unless you work at a circus or any other job like that. c:

maybe..