MARIN COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31 2017 $70,400

Question

MARIN COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31 2017 $70,400 153,600 2016 Debit Balances Cash Accounts Receivable Inventory Debt investments (available-for-sale) Equipment Buildings Land $51,300 130,900 60,900 85,100 48,500 145,400 24,800 $608,500 $546,900 74,500 54,500 69,700 145,400 40,400 Totals Credit Balances Allowance for Doubtful Accounts Accumulated Depreciation-Equipment Accumulated Depreciation-Buildings Accounts Payable Income Taxes Payable Long-Term Notes Payable Common Stock Retained Earnings $7,900 14,100 28,100 60,200 10,000 70,000 260,000 96,600 $608,500 $546,900 $9,900 20,900 37,200 65,600 11,900 62,000 310,000 91,000 Totals Additional data 1. Equipment that cost $10,000 and was 60% depreciated was sold in 2017. 2. Cash dividends were declared and paid during the year. 3. Common stock was issued in exchange for land. 4. Investments that cost $34,700 were sold during the year. 5. There were no write-offs of uncollectible accounts during the year.

Explanation / Answer

(a) Net cash provided by operating activities Cash receipts from customers $926,200 Cash payments: Cash payments to suppliers $612,100 Cash payments for operating expenses $224,100 Cash payments for income taxes $42,800 $879,000 Net cash provided by operating activities $47,200 Working (Sales) less (Increase in Accounts Receivables) $948,900 - ($153,600 - $130,900) (Cost of Goods Sold) plus (Increase in Inventory) less(Increase in Accounts Payable) $603,900 + (74,500 - 60,900) - (65,600 - 60,200) (Operating Expenses) less (Depreciation Expense) less(Bad Debt Expense) $248,000 - (37,200 - 28,100) - (20,900 - 14,100 + 10,000 x 0.60) - 2000 (Income Taxes) less (Increase in Income Taxes Payable) $44,700 - 1900 (b) Statement of cash flows For the year ended December 31, 2017 Cash flows from operating activities Net Income $64,300 Adjustments to reconcile net income Depreciation expense $21,900 Gain on sale of investments -$14,900 Loss on sale of equipment $2,900 Increase in accounts receivable (net) -$22,700 Increase in inventory -$13,600 Increase in accounts payable $5,400 Increase in doubtful accounts $2,000 Increase in income taxes payable $1,900 -$17,100 Net cash provided by operating activities $47,200 Cash flows from investing activities Purchase of investments -$4,100 Purchase of equipment -$31,200 Sale of investments $49,600 Sale of equipment $1,100 Net cash provided by investing activities $15,400 Cash flows from financing activities Payment of long-term notes payable -$8,000 Cash dividends paid -$69,900 Issuance of common stock $34,400 Net cash used by financing activities -$43,500 Net increase in cash $19,100 Cash, January 1, 2017 $51,300 Cash, December 31, 2017 $70,400

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