Condensed financial data of Kingbird Company for 2017 and 2016 are presented below. 2016 KINGBIRD COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 Cash $1,770 Receivables 1,740 Inventory 1,620 Plant assets 1,930 Accumulated depreciation (1,250 ) Long-term investments (held-to-maturity) 1,290 $7,100 $1,160 1,280 1,880 1,670 (1,190 ) 1,420 $6,220 $1,220 $920 190 240 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings 1,370 1,930 2,390 $7,100 1,570 1,730 1,760 $6,220 $6,860 4,600 2,260 930 1,330 KINGBIRD COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross margin Selling and administrative expenses Income from operations Other revenues and gains Gain on sale of investments Income before tax Income tax expense Net income Cash dividends Income retained in business 80 1,410 520 890 260 $630 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017. KINGBIRD COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 (Direct Method) Cash Flows from Operating Activities Cash Receipts from Customers 890 Cash Paid for Merchandise 4600 Cash Paid for Selling/Administrative Expenses 930 Cash Paid for Income Taxes 1410 ll Net Cash Provided by Operating Activities 1 Cash Flows from Investing Activities Purchase of Plant Assets (140) Sale of Investments Net Cash Provided by Investing Activities Cash Flows from Financing Activities Redemption of Bonds Payable Issuance of Capital Stock Payment of Cash Dividends Net Cash Used by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period Noncash Investing and Financing Activities Issuance of Common Stock for Plant Assets