Exercise 23-11

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

NASH COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016
		2017			2016
Cash		$1,840			$1,170
Receivables		1,730			1,310
Inventory		1,580			1,880
Plant assets		1,910			1,700
Accumulated depreciation		(1,210	)		(1,170	)
Long-term investments (held-to-maturity)		1,310			1,420
		$7,160			$6,310
Accounts payable		$1,190			$900
Accrued liabilities		210			260
Bonds payable		1,400			1,580
Common stock		1,880			1,720
Retained earnings		2,480			1,850
		$7,160			$6,310

NASH COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017
Sales revenue		$7,000
Cost of goods sold		4,710
Gross margin		2,290
Selling and administrative expenses		940
Income from operations		1,350
Other revenues and gains
Gain on sale of investments		80
Income before tax		1,430
Income tax expense		540
Net income		890
Cash dividends		260
Income retained in business		$630

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).)