Condensed financial data of Kingbird Company for 2017 and 2016 are presented below KINGBIRD COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 Cash Receivables Inventory Plant assets Accumulated depreciation Long-term investments (held-to-maturity) 2017 2016 $1,840 $1,170 1,730 1,310 1,580 1,880 1,910 1,700 (1,210) (1,170) 1,310 1,420 $7,160 $6,310 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1,190 $900 260 1,400 1,580 1,880 1,720 2,480 1,850 $7,160 $6,310 210 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 $7,000 4,710 2,290 940 1,350 Gain on sale of investments Income before tax Income tax expense Net income 80 1,430 540 890 260 $630 Cash dividends Income retained in business 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 (Indirect Method) Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Cash Flows from Operating Activities Increase in Accounts Receivable 420 Decrease in Inventory 300 Increase in Accounts Payable 290 Decrease in Accrued Liabilities 50 Depreciation Expense 40 Gain on Sale of Investments ) 80 Net Cash Provided by Investing Activities 970 Cash Flows from Investing Activities4 Purchase of Plant Assets Sale of Investments 210 Net Cash Used by Investing Activities Cash Flows from Financing Activities Redemption of Bonds Payable -180 Issuance of Capital Stock Payment of Cash Dividends 260 Net Cash Used by Financing Activities 4 Net Increase in Cash 670 Cash at Beginning of Period 1,170 Cash at End of Period 1,840 Noncash Investing and Financing Activities Issuance of Common Stock for Plant Assets