Answer:
Please see the Cash Flow Statement of Mitch Company for December 31, 2017 as shown below:
Explanation:
Mitch Company
Statement of Cash Flow
As of December 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES $
Net Income 93,000
<em>Adjustments to reconcile net income to
</em>
<em>net cash provided by operating activities:
</em>
Depreciation on Fixed Assets 34,000
<em>(Increase) Decrease in Current Assets:</em>
Accounts Receivables (12,000)
Inventory 22,000
<em>Increase (Decrease) in Current Assets:</em>
Accounts Payable (4,000)
Income Tax Payable 0
NET CASH PROVIDED BY OPERATING ACTIVITIES 133,000
CASH FLOWS FROM INVESTING ACTIVITIES
Bonds Payable Redeemed (50,000)
Purchase of Equipment (60,000)
Sale of Land 20,000
NET CASH USED IN INVESTING ACTIVITIES (90,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of Cash Dividends (39,000)
Issuance of Common Stock 42,000
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 3,000
NET INCREASE (DECREASE) IN CASH 46,000
<em>Cash Balance, December 31 2016 22,000 </em>
<em>Cash Balance, December 31 2017 68,000 </em>
