Hi, I need help with the following problem. Thank you!
The following is selected information from Reliant Company for
the fiscal years ended December 31, 2016:
Reliant Company had net income of $1,225,000.
Depreciation was $500,000, purchases of plant assets were
$1,250,000, and disposals of plant assets for $500,000 resulted in
a $50,000 gain. Stock was issued in exchange for an outstanding
note payable of $725,000. Accounts receivable decreased by $25,000.
Accounts payable decreased by $40,000. Dividends of $300,000 were
paid to shareholders. Reliant Company had interest
expense of $50,000. Cash balance on January 1, 2016 was
Reliant Company’s statement of cash flows for the year
ended December 31, 2016 using the indirect method.