Exercise 23-12 Condensed financial data of Bonita Company for 2017 and 2016 are presented below. BONITA COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 | | | 2017 | | 2016 | Cash | | $1,830 | | | $1,160 | | Receivables | | 1,750 | | | 1,270 | | Inventory | | 1,580 | | | 1,860 | | Plant assets | | 1,900 | | | 1,690 | | Accumulated depreciation | | (1,190 | ) | | (1,150 | ) | Long-term investments (held-to-maturity) | | 1,280 | | | 1,400 | | | | $7,150 | | | $6,230 | | | | | | | | | Accounts payable | | $1,220 | | | $920 | | Accrued liabilities | | 210 | | | 250 | | Bonds payable | | 1,410 | | | 1,520 | | Common stock | | 1,910 | | | 1,730 | | Retained earnings | | 2,400 | | | 1,810 | | | | $7,150 | | | $6,230 | | BONITA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 | Sales revenue | | $6,930 | Cost of goods sold | | 4,670 | Gross margin | | 2,260 | Selling and administrative expenses | | 940 | Income from operations | | 1,320 | Other revenues and gains | | | Gain on sale of investments | | 80 | Income before tax | | 1,400 | Income tax expense | | 550 | Net income | | 850 | Cash dividends | | 260 | Income retained in business | | $590 | 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 direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) BONITA COMPANY | Statement of Cash Flows | | | (Direct Method) | Cash Flows from operating activities | | | cash receipts from customers | | | cash paid for merchandise | | | cash paid for selling/admin expenses | | | cash paid for income taxes | | | | | | net cash provided by operating activities | | | cash flows from investing activities | | | sale of plant assets | | | sale of investments | | | net cash provided by investing activities | | | cash flows from financing acitivities | | | payment of cash dividends | | | redemption of bonds payable | | | issuance of capital stock | | | net cash used by financing activities | | | net increase in cash | | | cash at beginning of period | | | cash at end of period | | | noncash investing and financing activities | | | insurance of common stock for plant assets | | | | | | |