Question
Condensed financial data of Metlock Company for 2017 and 2016 are presented below. METLOCK COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016
Condensed financial data of Metlock Company for 2017 and 2016 are presented below.
METLOCK COMPANY
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2017 AND 2016
2017
2016
Cash$1,820
$1,130
Receivables1,730
1,280
Inventory1,590
1,870
Plant assets1,940
1,690
Accumulated depreciation(1,220
)
(1,180
)
Long-term investments (held-to-maturity)1,300
1,450
$7,160
$6,240
Accounts payable$1,200
$920
Accrued liabilities190
230
Bonds payable1,430
1,530
Common stock1,930
1,710
Retained earnings2,410
1,850
$7,160
$6,240
METLOCK COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2017
Sales revenue$6,840
Cost of goods sold4,630
Gross margin2,210
Selling and administrative expenses930
Income from operations1,280
Other revenues and gainsGain on sale of investments90
Income before tax1,370
Income tax expense550
Net income820Cash dividends
260
Income retained in business
$560
Additional information:
During the year, $60of common stock was issued in exchange for plant assets. No plant assets were sold in 2017.
Prepare statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
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