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Question

x® WileyPLUS x WileyPLUS e j https://edugen.wileyplus.com/edugen/student/mainfr.uni itters at Watch Series Onlin....Asos Blackboard Queens... US Kieso, Intermediate Accounting, 1Ge CALCULATOR ES Exercise 23-11 Condensed financial data of Pronghorn Company for 2017 and 2016 are presented below. PRONGHORN COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2016 $1,760$1,130 1,270 1,880 1,8901,700 2017 dy Cash Receivables Inventory Plant assets 1,740 1,640 (1,280)(1,150) 1,400 $6,230 Long-term investments (held-to-maturity) 1,280 $7,030 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1,200 190 1,380 1,870 2,390 $920 260 1,520 1,660 1,870 7,030$6 220

Explanation / Answer

PRONGHORN COMPANY

Statement of Cash Flows For the Year Ended December 31, 2017

(Indirect Method)

Cash Flows from Operating Activities

Net Income                                                                                                    $ 780

Adjustments to reconcile net income to

Net Cash Provided by Operating Activities

Depreciation Expense                                                         $ 130

Gain on Sale of Investments                                               ($ 70)

Decrease in Inventory                                                         $ 240

Increase in Accounts Payable                                            $ 280

Increase in Receivables-                                                     ($ 470 )

Decrease in Accrued Liabilities-                                       ($ 70)

Net Cash Provided by Operating Activities $ 40

Cash Flows from Investing Activities

Sale of Held-to-Maturity Investments $ 190

Purchase of Plant Assets-                                                   ($ 110)

Net Cash Provided by Investing Activities $ 80

Cash Flows from Financing Activities

Issuance of Capital Stock                                                   $ 130

Redemption of Bonds Payable-                                         ($ 140 )

Payment of Cash Dividends-                                              ($ 260)

Net Cash Used by Financing Activities- ($ 270)

Net Increase in Cash                                                                                    $ 630

Cash at Beginning of Period $ 1130

Cash at End of Period                                                                                $ 1760