A Comparative Balance Sheet for Halpern Corporation Is Presented Below

question 123

Essay

A comparative balance sheet for Halpern Corporation is presented below: $\begin{array}{c}\text { HALPERN CORPORATION}\\\text { Comparative Balance Sheet}\\\\\begin{array}{lrr}&2017&2016\\\text { Assets }\\\text { Cash } & \$ 36,000 & \$ 31,000 \\\text { Accounts receivable (net) } & 70,000 & 60,000 \\\text { Prepaid insurance } & 25,000 & 17,000 \\\text { Land } & 18,000 & 40,000 \\\text { Equipment } & 70,000 & 60,000 \\\text { Accumulated depreciation } & \underline{(20,000}) & \underline{(13,000}) \\\quad \text { Total Assets } & \underline{\$ 199,000} & \underline{\$ 195,000}\end{array}\end{array}$ $\begin{array}{lrr}\text { Liabilities and Stockholders' Equity }\\\text { Accounts payable } & \$ 11,000 & \$, 000 \\\text { Bonds payable } & 27,000 & 19,000 \\\text { Common stock } & 140,000 & 115,000 \\\text { Retained earnings } & 21,000 & 55,000 \\\quad \text { Total liabilities and stockholders' equity } & \$ 199,000 & \$ 195,000\end{array}$ Additional information:
1. Net loss for 2017 is $20000.
2. Cash dividends of $14000 were declared and paid in 2017.
3. Land was sold for cash at a loss of $4000. This was the only land transaction during the year.
4. Equipment with a cost of $15000 and accumulated depreciation of $10000 was sold for $5000 cash.
5. $22000 of bonds were retired during the year at carrying (book) value.
6. Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $25000.
Instructions
Prepare a statement of cash flows for the year ended 2017 using the indirect method.