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Exercise 23-11 Condensed financial data of Cheyenne Company for 2017 and 2016 are presented below. CHEYENNE COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017

Exercise 23-11

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

CHEYENNE COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016

2017

2016

Cash

$1,820

$1,150

Receivables

1,780

1,310

Inventory

1,600

1,930

Plant assets

1,930

1,710

Accumulated depreciation

(1,200

)

(1,160

)

Long-term investments (held-to-maturity)

1,320

1,400

$7,250

$6,340

Accounts payable

$1,190

$880

Accrued liabilities

190

270

Bonds payable

1,430

1,520

Common stock

1,900

1,730

Retained earnings

2,540

1,940

$7,250

$6,340

CHEYENNE COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017

Sales revenue

$6,860

Cost of goods sold

4,620

Gross margin

2,240

Selling and administrative expenses

920

Income from operations

1,320

Other revenues and gains
Gain on sale of investments

80

Income before tax

1,400

Income tax expense

540

Net income 860
Cash dividends

260

Income retained in business

$600

Additional information: During the year, $70 of 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).)

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