Exercise 23-12

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			$1,170
Receivables		1,780			1,300
Inventory		1,570			1,880
Plant assets		1,870			1,710
Accumulated depreciation		(1,210)			(1,190)
Long-term investments (held-to-maturity)		1,290			1,430
		$7,070			$6,300
Accounts payable		$1,200			$900
Accrued liabilities		200			250
Bonds payable		1,430			1,580
Common stock		1,860			1,730
Retained earnings		2,380			1,840
		$7,070			$6,300

WINDSOR COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017
Sales revenue		$6,820
Cost of goods sold		4,640
Gross margin		2,180
Selling and administrative expenses		910
Income from operations		1,270
Other revenues and gains
Gain on sale of investments		80
Income before tax		1,350
Income tax expense		550
Net income		800
Cash dividends		260
Income retained in business		$540

Additional information: During the year, $80 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).)