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WileyPLUS ee Uhura Company Has Dec × ? Secure l https://edugenwileyplus.com/edugen/student/mainfr.uni Kieso, Intermediate Accounting, 16e Read, Study & Practice Gradebook ORIONDownloadable eTextbook entOpen Assignment MENT RESOURCES Exercise 23-11 f Chapter 5/23 ork Condensed financial data of Sarasota Company for 2017 and 2016 are presented below. SARASOTA COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 1,790 $1,150 1,780 1,330 1,620 1,890 1,930 1,700 (1,200) (1,180) 1,310 1,420 2016 ise 5-3 cise 5-5 Cash Receivables Inventory Plant assets Accumulated depreciation Long-term investments (held-to-maturity) $7,230 $6,310 re Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1,210 $920 240 1,370 1,530 1,860 1,670 2,580 1,950 $7,230 $6,310 210 SARASOTA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 O Type here to search

Solution

Solution:

SARASOTA COMPANY

Statement of Cash Flow

For the Year Ended December 31, 2017

(Indirect Method)

Cash Flow from Operating Activities:

$$

$$

Net Income

$890

Adjustments to reconcile net income to

Net cash flow from operating activities

-

Gain on sale of investments (Investing Activity)

-$80

+

Depreciation Expense (1200 - 1180)

$20

-

Increase in Receivables (1780 - 1330)

-$450

+

Decrease in Inventories (1890 - 1620)

$270

+

Increase in Accounts Payable (1210 - 920)

$290

-

Decrease in Accrued Liabilities (240 - 210)

-$30

$20

Net Cash provided by Operative Activities

$910

Cash Flow from Investing Activities:

+

Cash received from sale of Investment (1420-1310+Gain 80)

$190

-

Cash paid for purchase of Plant Assets (1930 - 1700 - 70 in Exchange of common stock)

-$160

Net Cash provided by Investing Activities

$30

Cash Flow from Financing Activities:

-

Cash paid to redeem the bonds payable (1530 - 1370)

-$160

-

Cash Dividend Paid

-$260

+

Cash received from issuance of Common Stock (1860 - 70 - 1670)

$120

Net Cash used by Financing Activities

-$300

Net Increase/(Decrease) in Cash and Cash Equivalents

$640

Cash and Cash Equivalents at the beginning of the year

$1,150

Cash and Cash Equivalents at the end of the year

$1,790

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SARASOTA COMPANY
Statement of Cash Flow For the Year Ended December 31, 2017 (Indirect Method)
Cash Flow from Operating Activities:	$$	$$
Net Income		$890
Adjustments to reconcile net income to
Net cash flow from operating activities
-	Gain on sale of investments (Investing Activity)	-$80
+	Depreciation Expense (1200 - 1180)	$20
-	Increase in Receivables (1780 - 1330)	-$450
+	Decrease in Inventories (1890 - 1620)	$270
+	Increase in Accounts Payable (1210 - 920)	$290
-	Decrease in Accrued Liabilities (240 - 210)	-$30
			$20
Net Cash provided by Operative Activities		$910
Cash Flow from Investing Activities:
+	Cash received from sale of Investment (1420-1310+Gain 80)	$190
-	Cash paid for purchase of Plant Assets (1930 - 1700 - 70 in Exchange of common stock)	-$160
Net Cash provided by Investing Activities		$30
Cash Flow from Financing Activities:
-	Cash paid to redeem the bonds payable (1530 - 1370)	-$160
-	Cash Dividend Paid	-$260
+	Cash received from issuance of Common Stock (1860 - 70 - 1670)	$120
Net Cash used by Financing Activities		-$300
Net Increase/(Decrease) in Cash and Cash Equivalents		$640
Cash and Cash Equivalents at the beginning of the year		$1,150
Cash and Cash Equivalents at the end of the year		$1,790