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The Following Information Is Available for Sally Corporation for the Year

question 85

Essay

The following information is available for Sally Corporation for the year ended December 31, 2017: $\begin{array}{lr}\text { Collection of principal on long-term loan to a supplier } & \$ 15,000 \\\text { Acquisition of equipment for cash } & 10,000 \\\text { Proceeds from the sale of long-term investment at book value } & 20,000 \\\text { Issuance of common stock for cash } & 27,000\\\text { Depreciation expense } & 28,000 \\\text { Redemption of bonds payable at carrying (book) value } & 35,000 \\\text { Payment of cash dividends } & 15,000 \\\text { Net income } & 25,000 \\\text { Purchase of land by issuing bonds pavable } & 45,000\end{array}$ In addition, the following information is available from the comparative balance sheet for Sally at the end of 2016 and 2017: $The following information is available for Sally Corporation for the year ended December 31, 2017: \begin{array}{lr} \text { Collection of principal on long-term loan to a supplier } & \$ 15,000 \\ \text { Acquisition of equipment for cash } & 10,000 \\ \text { Proceeds from the sale of long-term investment at book value } & 20,000 \\ \text { Issuance of common stock for cash } & 27,000\\\text { Depreciation expense } & 28,000 \\ \text { Redemption of bonds payable at carrying (book) value } & 35,000 \\ \text { Payment of cash dividends } & 15,000 \\ \text { Net income } & 25,000 \\ \text { Purchase of land by issuing bonds pavable } & 45,000 \end{array} In addition, the following information is available from the comparative balance sheet for Sally at the end of 2016 and 2017: Instructions Prepare Sally's statement of cash flows for the year ended December 31, 2017 using the indirect method.$ Instructions
Prepare Sally's statement of cash flows for the year ended December 31, 2017 using the indirect method.

Definitions:

Desertification

The process by which fertile land becomes desert, typically as a result of drought, deforestation, or inappropriate agriculture.

Sahel Region

A semi-arid region of Africa that stretches from the Atlantic Ocean to the Red Sea, lying between the Sahara Desert to the north and the Sudanian Savanna to the south.

Spotted Owl

A species of owl known for its distinctive spots, native to the forests of North America, and often cited in discussions of conservation and forestry management.

Endangered

A status signifying that a species is in danger of extinction throughout all or a significant portion of its range.