WileyPLUS ee Uhura Company Has Dec × ? Secure l https://edugenwileyplus.com/edug
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WileyPLUS ee Uhura Company Has Dec × ? Secure l https://edugenwileyplus.com/edugen/student/mainfr.uni Kieso, Intermediate Accounting, 16e Read, Study & Practice Gradebook ORIONDownloadable eTextbook entOpen Assignment MENT RESOURCES Exercise 23-11 f Chapter 5/23 ork Condensed financial data of Sarasota Company for 2017 and 2016 are presented below. SARASOTA COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 1,790 $1,150 1,780 1,330 1,620 1,890 1,930 1,700 (1,200) (1,180) 1,310 1,420 2016 ise 5-3 cise 5-5 Cash Receivables Inventory Plant assets Accumulated depreciation Long-term investments (held-to-maturity) $7,230 $6,310 re Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1,210 $920 240 1,370 1,530 1,860 1,670 2,580 1,950 $7,230 $6,310 210 SARASOTA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 O Type here to searchExplanation / Answer
Solution:
SARASOTA COMPANY
Statement of Cash Flow
For the Year Ended December 31, 2017
(Indirect Method)
Cash Flow from Operating Activities:
$$
$$
Net Income
$890
Adjustments to reconcile net income to
Net cash flow from operating activities
-
Gain on sale of investments (Investing Activity)
-$80
+
Depreciation Expense (1200 - 1180)
$20
-
Increase in Receivables (1780 - 1330)
-$450
+
Decrease in Inventories (1890 - 1620)
$270
+
Increase in Accounts Payable (1210 - 920)
$290
-
Decrease in Accrued Liabilities (240 - 210)
-$30
$20
Net Cash provided by Operative Activities
$910
Cash Flow from Investing Activities:
+
Cash received from sale of Investment (1420-1310+Gain 80)
$190
-
Cash paid for purchase of Plant Assets (1930 - 1700 - 70 in Exchange of common stock)
-$160
Net Cash provided by Investing Activities
$30
Cash Flow from Financing Activities:
-
Cash paid to redeem the bonds payable (1530 - 1370)
-$160
-
Cash Dividend Paid
-$260
+
Cash received from issuance of Common Stock (1860 - 70 - 1670)
$120
Net Cash used by Financing Activities
-$300
Net Increase/(Decrease) in Cash and Cash Equivalents
$640
Cash and Cash Equivalents at the beginning of the year
$1,150
Cash and Cash Equivalents at the end of the year
$1,790
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SARASOTA COMPANY
Statement of Cash Flow
For the Year Ended December 31, 2017
(Indirect Method)
Cash Flow from Operating Activities:
$$
$$
Net Income
$890
Adjustments to reconcile net income to
Net cash flow from operating activities
-
Gain on sale of investments (Investing Activity)
-$80
+
Depreciation Expense (1200 - 1180)
$20
-
Increase in Receivables (1780 - 1330)
-$450
+
Decrease in Inventories (1890 - 1620)
$270
+
Increase in Accounts Payable (1210 - 920)
$290
-
Decrease in Accrued Liabilities (240 - 210)
-$30
$20
Net Cash provided by Operative Activities
$910
Cash Flow from Investing Activities:
+
Cash received from sale of Investment (1420-1310+Gain 80)
$190
-
Cash paid for purchase of Plant Assets (1930 - 1700 - 70 in Exchange of common stock)
-$160
Net Cash provided by Investing Activities
$30
Cash Flow from Financing Activities:
-
Cash paid to redeem the bonds payable (1530 - 1370)
-$160
-
Cash Dividend Paid
-$260
+
Cash received from issuance of Common Stock (1860 - 70 - 1670)
$120
Net Cash used by Financing Activities
-$300
Net Increase/(Decrease) in Cash and Cash Equivalents
$640
Cash and Cash Equivalents at the beginning of the year
$1,150
Cash and Cash Equivalents at the end of the year
$1,790
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