The comparative balance sheets for Rothlisberger Company

The comparative balance sheets for Rothlisberger Company as of December 31 are presented below.

ROTHLISBERGER COMPANY
Comparative Balance Sheets
December 31

Assets                                 2017    2016
Cash                                $57,700    $46,400
Accounts receivable          44,000    62,900
Inventory                         148,300    144,100
Prepaid expenses                 14,300    25,100
Land                                 98,900    132,900
Buildings                         198,700    198,700
Accumulated depreciation – buildings(59,200)    (310,000
Equipment                          227900    155900
Accumulated depreciation – equipment  42,100    37,600

Total                                 $688,500    $697,400

Liabilities and stockholders’ Equity       
Accounts payable               $ 46,000    $39,400
Bonds payable                        260,000    291,000
Common stock, $1 par           189,300    158,300
Retained earnings                193,200    208,700

Total                               $ 688,500    $697,400

Additional information:

1. Operating expenses include depreciation expense of $42,000 and charges from prepaid expenses of $10,800.
2. Land was sold for cash at book value.
3. Cash dividends of $61,300 were paid.
4. Net income for 2017 was $45,800.
5. Equipment was purchased for $94,000 cash. In addition, equipment costing $22,000 with a book value of $12,700 was sold for $5,100 cash.
6. Bonds were converted at face value by issuing 31,000 shares of $1 par value common stock.

Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method.

Here’s the SOLUTION

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