The information shown below is taken from the accounts of Waverly Corporation for the year ended December 31, 2017.

Net income $314,000

Amortization of patent 12,000

Proceeds from issuance of common stock 103,000

Decrease in inventory 27,000

Sale of building at a $15,000 gain 85,000

Decrease in accounts payable 15,000

Purchase of equipment 185,000

Payment of cash dividends 24,000

Depreciation expense 55,000

Decrease in accounts receivable 23,000

Payment of mortgage 75,000

Increase in short-term notes payable 8,000

Sale of land at a $5,000 loss 40,000

Purchase of delivery van 33,000

Cash at beginning of year 205,000

Prepare a statement of cash flows for Waverly Corporation for the year ended December 31, 2017.

Cash Balance at End of Year $530,000

Explanation:

Waverly Corporation Statement of Cash FlowsFor the Year Ended December 31,2017

Cash Flows from Operating Activities:

Net Income$314,000

Adj. to reconcile net income to net cashprovided by operating activities: Depreciation Expense$ 55,000

Amortization of Patent$ 12,000

Gain on Sale of Building$ (15,000)

Loss Sale of Land $ 5,000

Decrease in Inventory$ 27,000

Decrease in AR$ 23,000

Decrease in AP $ (15,000)

Increase in short-term Notes Payable $

8,000

Net Cash Provided by Operating Activities $414,000

Cash Flows from Investing Activities:

Purchase of Equipment (185,000)

Sale of Building $ 85,000

Sale of Land $ 40,000

Purchase of Van $ (33,000)

Net Cash Used by Investing Activities [ ($218,000) - $125,000] ($93,000)

Cash Flows from Financing Activities:

Payment of Cash Dividends $ (24,000)

Payment of Mortgage $ (75,000)

Proceeds of Issuance of CS $103,000

Net Cash Used by Financing Activities$ ($103,000-$99,000) $4,000

Net Increase in Cash ($414,000+$4000-$93,000) $325,000

Cash Balance at Beg of Year $205,000

Cash Balance at End of Year ($325,000+$205,000) $530,000