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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

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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

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