Exercise 23-11

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

WINDSOR COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016
		2017			2016
Cash		$1,770			$1,160
Receivables		1,740			1,280
Inventory		1,620			1,880
Plant assets		1,930			1,670
Accumulated depreciation		(1,250	)		(1,190	)
Long-term investments (held-to-maturity)		1,290			1,420
		$7,100			$6,220
Accounts payable		$1,220			$920
Accrued liabilities		190			240
Bonds payable		1,370			1,570
Common stock		1,930			1,730
Retained earnings		2,390			1,760
		$7,100			$6,220

WINDSOR COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017
Sales revenue		$6,860
Cost of goods sold		4,600
Gross margin		2,260
Selling and administrative expenses		930
Income from operations		1,330
Other revenues and gains
Gain on sale of investments		80
Income before tax		1,410
Income tax expense		520
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).)

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).) WINDSOR COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 (Indirect Method) Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Used by Operating Activities Depreciation Expense Gain on Sale of Investments > Net Income