Following are selected balance sheet accounts of Sheridan Bros. Corp. at Decembe

Question

Following are selected balance sheet accounts of Sheridan Bros. Corp. at December 31, 2017 and 2016, and the increases or decreases in each account from 2016 to 2017. Also presented is selected income statement information for the year ended December 31, 2017, and additional information.

2017

2016

Increase
(Decrease)

2017

2016

Increase

Additional information:

Determine the category (operating, investing, or financing) and the amount that should be reported in the statement of cash flows for the following items.

Activity

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Selected balance sheet accounts Assets

2017

2016

Increase
(Decrease)

Accounts receivable $34,100 $24,100 $10,000 Property, plant, and equipment 275,900 249,500 26,400 Accumulated depreciation—plant assets (179,200 ) (167,800 ) (11,400 ) Liabilities and stockholders’ equity

2017

2016

Increase

Bonds payable $ 49,500 $46,300 $3,200 Dividends payable 8,000 4,900 3,100 Common stock, $1 par 21,800 19,000 2,800 Additional paid-in capital 9,100 3,100 6,000 Retained earnings 103,300 90,300 13,000 Selected income statement information for the year ended December 31, 2017: Sales revenue $156,100 Depreciation 38,400 Gain on sale of equipment 14,500 Net income 31,300

Explanation / Answer

Activity (a) Payments for purchase of property, plant, and equipment. Investing =26400+44800 = $        71,200 (b) Proceeds from the sale of equipment. Investing =14500+44800-(38400-11400) = $        32,300 (c) Cash dividends paid. Financing = 31300-13000 = $        18,300 (d) Redemption of bonds payable. Financing = 19900-3200 = $        16,700

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