Exercise 23-10 Following are selected balance sheet accounts of Pronghorn Bros.

Question

Exercise 23-10

Following are selected balance sheet accounts of Pronghorn 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

Selected balance sheet accounts Assets

2017

2016

Increase
(Decrease)

Accounts receivable $33,900 $23,900 $10,000 Property, plant, and equipment 275,600 247,900 27,700 Accumulated depreciation—plant assets (177,100 ) (168,700 ) (8,400 ) Liabilities and stockholders’ equity

2017

2016

Increase

Bonds payable $ 48,700 $46,100 $2,600 Dividends payable 8,000 5,000 3,000 Common stock, $1 par 22,300 18,800 3,500 Additional paid-in capital 9,100 3,000 6,100 Retained earnings 105,100 91,500 13,600 Selected income statement information for the year ended December 31, 2017: Sales revenue $155,200 Depreciation 37,800 Gain on sale of equipment 14,700 Net income 30,900

Explanation / Answer

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

Payments for purchase of property, plant, and equipment

(27700+44900-20000)

Activity a

Payments for purchase of property, plant, and equipment

(27700+44900-20000)

Investing -52600 b Proceeds from the sale of equipment. (44900+14700) Investing 59600 c Cash dividends paid. (91500+30900-105100) Financing -17300 d Redemption of bonds payable (46100+20000-48700) Financing -17400

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.