Exercise 23-11 Condensed financial data of Pina Company for 2017 and 2016 are pr
ID: 2597982 • Letter: E
Question
Exercise 23-11
Condensed financial data of Pina Company for 2017 and 2016 are presented below.
PINA COMPANY
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2017 AND 2016
2017
2016
$1,820
$1,130
1,730
1,280
1,590
1,870
1,940
1,690
(1,220
(1,180
1,300
1,450
$7,160
$6,240
$1,200
$920
190
230
1,430
1,530
1,930
1,710
2,410
1,850
$7,160
$6,240
PINA COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2017
$6,840
4,630
2,210
930
1,280
90
1,370
550
260
$560
Additional information:
During the year, $60 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017.
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Adjustments to reconcile net income to
$
PINA COMPANY
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2017 AND 2016
2017
2016
Cash$1,820
$1,130
Receivables1,730
1,280
Inventory1,590
1,870
Plant assets1,940
1,690
Accumulated depreciation(1,220
)(1,180
) Long-term investments (held-to-maturity)1,300
1,450
$7,160
$6,240
Accounts payable$1,200
$920
Accrued liabilities190
230
Bonds payable1,430
1,530
Common stock1,930
1,710
Retained earnings2,410
1,850
$7,160
$6,240
Explanation / Answer
Statement of cash flow cash flow from operating activities net income for the year 820 Adjustments to reconcile net income to cash flows from operating activities increase in account receivable -450 decrease in inventory 280 Depreciation expense 40 Gain on sale of investments -90 increase in accounts payable 280 decrease in accrued liabilities -40 Net cash provided by operating activities 840 840 Cash flow from investing activities cash from sale of investment 240 purchase of plant assets -190 Net cash provided by investing activities 50 50 cash flow from financing activities cash dividend -260 Cash from stock issue 160 redemption of bonds -100 Net cash used by financing activities -200 -200 Net increase in cash 690 Cash at the beginning 1,130 cash at year end 1820