Exercise 23-12

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

CARLA COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016
		2017			2016
Cash		$1,790			$1,170
Receivables		1,780			1,310
Inventory		1,580			1,900
Plant assets		1,900			1,720
Accumulated depreciation		(1,180	)		(1,140	)
Long-term investments (held-to-maturity)		1,310			1,420
		$7,180			$6,380
Accounts payable		$1,220			$880
Accrued liabilities		210			240
Bonds payable		1,380			1,550
Common stock		1,930			1,660
Retained earnings		2,440			2,050
		$7,180			$6,380

CARLA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017
Sales revenue		$6,690
Cost of goods sold		4,650
Gross margin		2,040
Selling and administrative expenses		930
Income from operations		1,110
Other revenues and gains
Gain on sale of investments		90
Income before tax		1,200
Income tax expense		550
Net income		650
Cash dividends		260
Income retained in business		$390

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).)

CARLA COMPANY Strtement of Cash Flows (Direct Method)