Exercise 23B-17 Pina Inc., had the following condensed balance sheet at the end
ID: 2534740 • Letter: E
Question
Exercise 23B-17
Pina Inc., had the following condensed balance sheet at the end of operations for 2016.
PINA INC.
BALANCE SHEET
DECEMBER 31, 2016
$8,500
$14,900
29,200
25,400
19,900
25,000
68,200
75,000
39,700
25,200
$165,500
$165,500
During 2017, the following occurred.
8.Both current assets (other than cash) and current liabilities remained at the same amount.
Prepare a statement of cash flows for 2017 using the indirect method.
Prepare the condensed balance sheet for Pina Inc. as it would appear at December 31, 2017
PINA INC.
BALANCE SHEET
DECEMBER 31, 2016
$8,500
Current liabilities$14,900
Current assets other than cash29,200
Long-term notes payable25,400
Equity invesments19,900
Bonds payable25,000
Plant assets (net)68,200
Common stock75,000
Land39,700
Retained earnings25,200
$165,500
$165,500
Explanation / Answer
PINA INC. Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities: Net income 30200 Adjustments to reconcile net income to net cash provided by operations: Depreciation 13600 Gain on sale of investments -2000 11600 Net cash provided by operating activities 41800 Cash Flows from Investing Activities: Sale proceeds from investments 12700 Purchase of land -8900 Net cash provided by investing activities 3800 Cash Flows from Financing Activities Issuance of common stock 10000 Redemption of bonds payable -15000 Payment of cash dividends -9400 Net cash used by financing activities -14400 Net increase (decrease) in cash 31200 Cash balance, December 31, 2016 8500 Cash balance, December 31, 2017 39700 Non-cash investing and financing activities: Land purchased by issuance of bonds payable of $22600.Related Questions
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