Exercise 23-12

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

SPLISH COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016
		2017			2016
Cash		$1,830			$1,140
Receivables		1,720			1,280
Inventory		1,610			1,900
Plant assets		1,870			1,690
Accumulated depreciation		(1,210	)		(1,190	)
Long-term investments (held-to-maturity)		1,270			1,410
		$7,090			$6,230
Accounts payable		$1,230			$910
Accrued liabilities		200			250
Bonds payable		1,410			1,540
Common stock		1,880			1,710
Retained earnings		2,370			1,820
		$7,090			$6,230

SPLISH COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017
Sales revenue		$6,880
Cost of goods sold		4,680
Gross margin		2,200
Selling and administrative expenses		930
Income from operations		1,270
Other revenues and gains
Gain on sale of investments		80
Income before tax		1,350
Income tax expense		540
Net income		810
Cash dividends		260
Income retained in business		$550

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).)