| Exercise 23-12
Condensed financial data of Flint Company for 2017 and 2016 are presented below.
FLINT COMPANY
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2017 AND 2016 |
|
|
2017 |
|
2016 |
| Cash |
|
$1,780 |
|
|
$1,120 |
|
| Receivables |
|
1,750 |
|
|
1,300 |
|
| Inventory |
|
1,590 |
|
|
1,940 |
|
| Plant assets |
|
1,940 |
|
|
1,670 |
|
| Accumulated depreciation |
|
(1,190 |
) |
|
(1,140 |
) |
| Long-term investments (held-to-maturity) |
|
1,300 |
|
|
1,400 |
|
|
|
$7,170 |
|
|
$6,290 |
|
|
|
|
|
|
|
|
| Accounts payable |
|
$1,220 |
|
|
$880 |
|
| Accrued liabilities |
|
190 |
|
|
250 |
|
| Bonds payable |
|
1,380 |
|
|
1,570 |
|
| Common stock |
|
1,920 |
|
|
1,730 |
|
| Retained earnings |
|
2,460 |
|
|
1,860 |
|
|
|
$7,170 |
|
|
$6,290 |
|
FLINT COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2017 |
| Sales revenue |
|
$7,040 |
| Cost of goods sold |
|
4,800 |
| Gross margin |
|
2,240 |
| Selling and administrative expenses |
|
910 |
| Income from operations |
|
1,330 |
| Other revenues and gains |
|
|
| Gain on sale of investments |
|
80 |
| Income before tax |
|
1,410 |
| Income tax expense |
|
550 |
| Net income |
|
860 |
| Cash dividends |
|
260 |
| Income retained in business |
|
$600 |
Additional information:
During the year, $120 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 direct method |
USA: +1 (725) 712-1730 
Sign in
