Question & Answer: Condensed financial data of Flint Company for 2017 and 2016 are presented below……

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

Expert Answer

 

Question & Answer: Condensed financial data of Flint Company for 2017 and 2016 are presented below...... 1Question & Answer: Condensed financial data of Flint Company for 2017 and 2016 are presented below...... 2

Still stressed from student homework?
Get quality assistance from academic writers!