Below is the comparative balance sheet for Sandhill Corporation. Dec. 31, 2017 D

Question

Below is the comparative balance sheet for Sandhill Corporation. Dec. 31, 2017 Dec. Cash Short-term investments Accounts receivable Allowance for doubtful accounts Prepaid expenses Inventory Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Delivery equipment Accumulated depreciation-delivery equipment Patents $16,300 24,800 43,400 (1,800 ) 4,100 81,700 49,500 125,100 (29,800) 52,600 (19,000 ) 38,700 (21,900 ) 15,100 31, 2016 $21,000 18,800 45,500 (2,000 ) 2,500 65,600 49,500 74,000 (22,900) 46,500 (15,700 ) 38,700 (20,600 ) 0 $378,800 $300,900 Accounts payable Short-term notes payable (trade) Accrued payables Mortgage payable Bonds payable Common stock Paid-in capital in excess of par Retained earning:s $26,200 4,000 3,000 73,000 50,000 139,000 10,100 73,500 $378,800 $16,200 6,000 4,700 53,500 61,900 100,900 4,000 53,700 $300,900 Dividends in the amount of $14,900 were declared and paid in 2017.

Explanation / Answer

SANDHILL CORPORATION WORKSHEET FOR PREPARATION OF STATEMENT OF CASH FLOWS 2017 Balance at 12/31/2016 Reconciling Items Balance at 12/31/2017 Accounts Debit Credit Debits Cash 21000 4700 16300 Short-term investments 18800 6000 24800 Accounta Receivable 45500 2100 43400 Prepaid Expenses 2500 1600 4100 Inventory 65600 16100 81700 Land 49500 0 49500 Buildings 74000 51100 125100 Equipment 46500 6100 52600 Delivery Equipment 38700 0 38700 Patents 0 15100 15100 362100 96000 6800 451300 Credits Accounts Payable 16200 10000 26200 Short-Term Notes Payable (Trade) 6000 2000 4000 Accrued Payables 4700 1700 3000 Allowance for doubtful accounts 2000 200 1800 Accumulated Depreciation - Buildings 22900 6900 29800 Accumulated Depreciation - Equipment 15700 3300 19000 Accumulated Depreciation - Delivery Equipment 20600 1300 21900 Mortgage Payable 53500 19500 73000 Bonds Payable 61900 11900 50000 Common Stock 100900 38100 139000 Paid-in-capital in excess 4000 6100 10100 Retained Earnings 53700 19800 73500 362100 15800 105000 451300 SANDHILL CORPORATION Statement of cash flows for the year ended December 31, 2017 Cash flow from operations: Net income (Note 1 ) 34700 Adjustments for non cash items: Depreciation (Note 2) 11500 Adjustments for changes in current assets and current liabilities: Increase in short-term investments -6000 Accounts Receivable 1900 Prepaid Expenses -1600 Inventory -16100 Accounts Payable 10000 Short-term note payable -2000 Accrued Liabilities -1700 -4000 Net funds provided by (used in) operating activities 30700 Cash flow from investing activities: Payment for buildings -31600 Payment for Equipment -6100 Payment for patents -15100 Net funds provided by (used in) investing activities -52800 Cash flow from financing activities: Retirement of bonda payable -11900 Issue of common stock 44200 Dividends paid -14900 Net funds provided by (used in) financing   activities 17400 Net cash flow -4700 -4700 Cash balance as at December 31, 2016 21000 0 Cash balance as at December 31, 2017 16300 1. Net Income Change in retained earnings 19800 Dividends Paid 14900 Net income for the year 34700 2. Depreciation Increase in accumulated depreciation in r/o Buildings 6900 Equipment 3300 Delivery Vehicles 1300 Total depreciation 11500 Payment for buildings: Increase in buildings account 51100 Increase in mortgage payable -19500 Cash paid for buildings 31600

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