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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
Nichol Corporation's comparative balance sheets are presented below.
NICHOL CORPORATION
Comparative Balance Sheets
December 31
                                                                                                              2016                        2015  Â
                       Cash                                                                           $ 12,200                     $ 17,700
                       Accounts receivable                                                      25,200                       22,300
                       Investments                                                                   25,000                       16,000
                       Equipment                                                                     60,000                       70,000
                       Accumulated depreciation                                          (14,000)                     (10,000)
                           Total                                                                      $108,400                   $116,000
                       Accounts payable                                                      $ 14,600                     $11,100
                       Bonds payable                                                              10,000                      30,000
                       Common stock                                                             50,000                       45,000
                       Retained earnings                                                        33,800                      29,900
                          Total                                                                        $108,400                  $116,000
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Additional information:
1.    Net income was $17,300. Dividends declared and paid were $13,400.
2.    Equipment which cost $10,000 and had accumulated depreciation of $2,200 was sold for $3,800.
3.    All other changes in noncurrent account balances had a direct effect on cash flows, except          the change in accumulated depreciation.
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Instruction
Prepare a statement of cash flows for 2015 using the indirect method. (25 pts.)
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