Exercise 23-11

Condensed financial data of Carla Company for 2017 and 2016 are presented below.

CARLA COMPANY

COMPARATIVE BALANCE SHEET

AS OF DECEMBER 31, 2017 AND 2016

2017

2016

Cash$1,800

$1,130

Receivables1,750

1,320

Inventory1,630

1,890

Plant assets1,910

1,720

Accumulated depreciation(1,190

)(1,170

)Long-term investments (held-to-maturity)1,280

1,410

$7,180

$6,300

Accounts payable$1,230

$910

Accrued liabilities190

240

Bonds payable1,400

1,540

Common stock1,930

1,680

Retained earnings2,430

1,930

$7,180

$6,300

CARLA COMPANY

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2017

Sales revenue$6,890

Cost of goods sold4,730

Gross margin2,160

Selling and administrative expenses940

Income from operations1,220

Other revenues and gainsGain on sale of investments90

Income before tax1,310

Income tax expense550

Net income760Cash dividends

260

Income retained in business

$500

Additional information:

During the year, $60of common stock was issued in exchange for plant assets. No plant assets were sold in 2017.

Prepare a statement of cash flows using the indirect method.(Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

CARLACOMPANY

Statement of Cash Flows

December 31, 2017

For the Year Ended December 31, 2017

For the Quarter Ended December 31, 2017

(Indirect Method)

Cash at Beginning of Period

Cash at End of Period

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

Depreciation Expense

Issuance of Common Stock for Plant Assets

Purchase of Plant Assets

Net Income

Decrease in Inventory

Issuance of Capital Stock

Gain on Sale of Investments

Increase in Inventory

Loss on Sale of Investments

Increase in Accounts Payable

Redemption of Bonds Payable

Decrease in Accounts Payable

Payment of Cash Dividends

Increase in Accounts Receivable

Decrease in Accounts Receivable

Decrease in Accrued Liabilities

Increase in Accrued Liabilities

Sale of Investments

$

Adjustments to reconcile net income to

Cash at Beginning of Period

Cash at End of Period

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

Purchase of Plant Assets

Redemption of Bonds Payable

Issuance of Capital Stock

Increase in Accounts Payable

Sale of Bonds Payable

Increase in Accounts Receivable

Increase in Accrued Liabilities

Gain on Sale of Investments

Sale of Investments

Decrease in Accounts Payable

Decrease in Accrued Liabilities

Issuance of Common Stock for Plant Assets

Payment of Cash Dividends

Depreciation Expense

Redemption of Common stock

Sale of Plant Assets

Decrease in Accounts Receivable

Purchase of Held-to-Maturity Investments

Net Income

Loss on Sale of Investments

Decrease in Inventory

Increase in Inventory

$

Sale of Investments

Purchase of Plant Assets

Purchase of Held-to-Maturity Investments

Decrease in Accounts Receivable

Increase in Inventory

Gain on Sale of Investments

Net Income

Decrease in Accrued Liabilities

Increase in Accrued Liabilities

Loss on Sale of Investments

Issuance of Capital Stock

Sale of Plant Assets

Decrease in Accounts Payable

Depreciation Expense

Increase in Accounts Receivable

Increase in Accounts Payable

Decrease in Inventory

Redemption of Bonds Payable

Payment of Cash Dividends

Issuance of Common Stock for Plant Assets

Redemption of Common stock

Sale of Bonds Payable

Decrease in Accounts Receivable

Decrease in Accounts Payable

Redemption of Common stock

Purchase of Held-to-Maturity Investments

Sale of Bonds Payable

Net Income

Sale of Plant Assets

Increase in Accounts Payable

Redemption of Bonds Payable

Decrease in Accrued Liabilities

Increase in Accrued Liabilities

Increase in Accounts Receivable

Sale of Investments

Depreciation Expense

Purchase of Plant Assets

Issuance of Capital Stock

Payment of Cash Dividends

Gain on Sale of Investments

Issuance of Common Stock for Plant Assets

Loss on Sale of Investments

Increase in Inventory

Decrease in Inventory

Depreciation Expense

Sale of Bonds Payable

Payment of Cash Dividends

Issuance of Common Stock for Plant Assets

Redemption of Bonds Payable

Redemption of Common stock

Sale of Plant Assets

Gain on Sale of Investments

Purchase of Held-to-Maturity Investments

Net Income

Loss on Sale of Investments

Decrease in Inventory

Increase in Accounts Payable

Increase in Accrued Liabilities

Sale of Investments

Increase in Inventory

Decrease in Accounts Payable

Increase in Accounts Receivable

Decrease in Accounts Receivable

Decrease in Accrued Liabilities

Purchase of Plant Assets

Issuance of Capital Stock

Sale of Investments

Issuance of Common Stock for Plant Assets

Purchase of Plant Assets

Increase in Inventory

Net Income

Depreciation Expense

Decrease in Accounts Receivable

Issuance of Capital Stock

Redemption of Bonds Payable

Payment of Cash Dividends

Increase in Accounts Payable

Decrease in Inventory

Sale of Plant Assets

Loss on Sale of Investments

Decrease in Accounts Payable

Purchase of Held-to-Maturity Investments

Redemption of Common stock

Increase in Accrued Liabilities

Gain on Sale of Investments

Increase in Accounts Receivable

Sale of Bonds Payable

Decrease in Accrued Liabilities

Sale of Bonds Payable

Sale of Investments

Decrease in Inventory

Purchase of Held-to-Maturity Investments

Purchase of Plant Assets

Decrease in Accounts Receivable

Net Income

Depreciation Expense

Increase in Accrued Liabilities

Issuance of Common Stock for Plant Assets

Issuance of Capital Stock

Increase in Accounts Payable

Redemption of Bonds Payable

Payment of Cash Dividends

Redemption of Common stock

Gain on Sale of Investments

Loss on Sale of Investments

Decrease in Accrued Liabilities

Sale of Plant Assets

Increase in Inventory

Decrease in Accounts Payable

Increase in Accounts Receivable

Cash at Beginning of Period

Cash at End of Period

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

Cash at Beginning of Period

Cash at End of Period

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

Increase in Accounts Payable

Purchase of Plant Assets

Redemption of Bonds Payable

Net Income

Increase in Accounts Receivable

Increase in Inventory

Purchase of Held-to-Maturity Investments

Sale of Bonds Payable

Issuance of Common Stock for Plant Assets

Sale of Investments

Loss on Sale of Investments

Issuance of Capital Stock

Sale of Plant Assets

Depreciation Expense

Payment of Cash Dividends

Decrease in Accounts Payable

Redemption of Common stock

Gain on Sale of Investments

Decrease in Inventory

Decrease in Accounts Receivable

Decrease in Accrued Liabilities

Increase in Accrued Liabilities

Decrease in Inventory

Payment of Cash Dividends

Decrease in Accounts Receivable

Increase in Accounts Receivable

Decrease in Accrued Liabilities

Increase in Accrued Liabilities

Purchase of Held-to-Maturity Investments

Redemption of Common stock

Sale of Plant Assets

Sale of Investments

Sale of Bonds Payable

Purchase of Plant Assets

Redemption of Bonds Payable

Issuance of Capital Stock

Depreciation Expense

Net Income

Gain on Sale of Investments

Loss on Sale of Investments

Issuance of Common Stock for Plant Assets

Increase in Inventory

Increase in Accounts Payable

Decrease in Accounts Payable

Cash at Beginning of Period

Cash at End of Period

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

Cash at Beginning of Period

Cash at End of Period

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

Payment of Cash Dividends

Issuance of Capital Stock

Decrease in Accrued Liabilities

Decrease in Accounts Payable

Increase in Accounts Receivable

Decrease in Accounts Receivable

Increase in Accrued Liabilities

Sale of Investments

Purchase of Plant Assets

Redemption of Common stock

Gain on Sale of Investments

Purchase of Held-to-Maturity Investments

Sale of Plant Assets

Sale of Bonds Payable

Redemption of Bonds Payable

Loss on Sale of Investments

Issuance of Common Stock for Plant Assets

Net Income

Decrease in Inventory

Depreciation Expense

Increase in Inventory

Increase in Accounts Payable

Decrease in Accounts Receivable

Sale of Bonds Payable

Sale of Investments

Increase in Accounts Payable

Issuance of Common Stock for Plant Assets

Net Income

Payment of Cash Dividends

Increase in Accrued Liabilities

Decrease in Accrued Liabilities

Decrease in Accounts Payable

Increase in Accounts Receivable

Increase in Inventory

Purchase of Plant Assets

Redemption of Bonds Payable

Issuance of Capital Stock

Redemption of Common stock

Sale of Plant Assets

Purchase of Held-to-Maturity Investments

Depreciation Expense

Gain on Sale of Investments

Loss on Sale of Investments

Decrease in Inventory

Sale of Plant Assets

Gain on Sale of Investments

Sale of Bonds Payable

Purchase of Held-to-Maturity Investments

Decrease in Inventory

Net Income

Purchase of Plant Assets

Loss on Sale of Investments

Issuance of Common Stock for Plant Assets

Redemption of Common stock

Increase in Inventory

Payment of Cash Dividends

Depreciation Expense

Increase in Accounts Payable

Issuance of Capital Stock

Decrease in Accounts Payable

Increase in Accounts Receivable

Decrease in Accounts Receivable

Decrease in Accrued Liabilities

Increase in Accrued Liabilities

Redemption of Bonds Payable

Sale of Investments

Cash at Beginning of Period

Cash at End of Period

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

Cash at Beginning of Period

Cash at End of Period

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

Cash at Beginning of Period

Cash at End of Period

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

Cash at Beginning of Period

Cash at End of Period

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

$

Cash at Beginning of Period

Cash at End of Period

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

Issuance of Common Stock for Plant Assets

Decrease in Inventory

Payment of Cash Dividends

Redemption of Bonds Payable

Decrease in Accounts Payable

Net Income

Loss on Sale of Investments

Decrease in Accrued Liabilities

Sale of Investments

Depreciation Expense

Gain on Sale of Investments

Increase in Inventory

Increase in Accounts Payable

Increase in Accounts Receivable

Decrease in Accounts Receivable

Increase in Accrued Liabilities

Purchase of Plant Assets

Issuance of Capital Stock

$

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