The comparative balance sheets for Sors Limited at December 31 are as follows:
Additional information for 2017:
|
a. |
Net income for the year was $27,500. There were no income taxes. |
|
b. |
No land was sold. |
|
c. |
Equipment was purchased for $20,000 in exchange for common shares valued at $5,000, plus $15,000 cash. |
|
d. |
Equipment costing $10,000 was sold for $12,000 cash; a $4,000 gain was reported in net income. |
|
e. |
Cash dividends of $5,000 were declared and paid. |
|
f. |
Depreciation expense of $3,000 was included in the net income amount. |
Required:
- Prepare a cash flow table for the year ended December 31, 2017.
- Prepare a statement of cash flows.
- What observations about Sors Limited can you make from the SCF?
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