Question
Exercise 23-11 Condensed financial data of Pronghorn Company for 2017 and 2016 are presented below. PRONGHORN COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017
Exercise 23-11
Condensed financial data of Pronghorn Company for 2017 and 2016 are presented below.
PRONGHORN COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 | ||||||
2017 | 2016 | |||||
Cash | $1,770 | $1,170 | ||||
Receivables | 1,790 | 1,320 | ||||
Inventory | 1,610 | 1,940 | ||||
Plant assets | 1,910 | 1,680 | ||||
Accumulated depreciation | (1,200 | ) | (1,190 | ) | ||
Long-term investments (held-to-maturity) | 1,300 | 1,420 | ||||
$7,180 | $6,340 | |||||
Accounts payable | $1,210 | $910 | ||||
Accrued liabilities | 200 | 240 | ||||
Bonds payable | 1,370 | 1,560 | ||||
Common stock | 1,880 | 1,740 | ||||
Retained earnings | 2,520 | 1,890 | ||||
$7,180 | $6,340 |
PRONGHORN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 | ||
Sales revenue | $7,010 | |
Cost of goods sold | 4,730 | |
Gross margin | 2,280 | |
Selling and administrative expenses | 930 | |
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).)
PRONGHORN COMPANY Statement of Cash Flows Indirect Met Adjustments to reconcile net income toStep by Step Solution
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