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Exercise 23-13 Coronado Inc., a greeting card company, had the following statements prepared as of December 31, 2017. CORONADO INC COMPARATIVE BALANCE SHEET AS OF
Exercise 23-13 Coronado Inc., a greeting card company, had the following statements prepared as of December 31, 2017. CORONADO INC COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 $5,900 $6,900 51,200 Short-term debt investments (available-for-sale) 34,70018,000 59,700 4,100 152,700 130,200 Cash Accounts receivable 61,400 40,200 5,000 Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets (35,400) (25,000) 49,900 $310,200 $295,000 45,700 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity $46,300 $40,400 6,000 3,900 10,100 69,400 100,000 100,000 30,000 35,200 $310,200 $295,000 3,900 8,100 8,100 60,200 30,000 53,600 CORONADO INC INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income $335,07!5 175,200 159,875 120,100 39,775 $11,400 2,000 9,400 30,375 6,075 $24,300 Additional information: 1. Dividends in the amount of $5,900 were declared and paid during 2017. 2. Depreciation expense and amortization expense are included in operating expenses 3. No unrealized gains or losses have occurred on the investments during the year 4. Equipment that had a cost of $20,100 and was 70% depreciated was sold during 2017 Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis e.g. (15,000).) CORONADO INC. Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities+ Cash Received from Customers 324875 Cash Payments to Suppliers Cash Payments for Operating Expenses Cash Payments for Interest Cash Payments for Income Taxes 149800 100330 11400 -8175 -269705 Net Cash Provided by Operating Activities 55170 Cash Flows from Investing Activities Sale of Equipment Purchase of Equipment Purchase of Investments Net Cash Used by Investing Activities Cash Flows from Financing Activities Principal Payment on Short-term Loan Dividend Payments Principal Payment on Long-term Loan Net Cash Used by Financing Activities -1000 $6,900 $5,900 Net Decrease in Cash Cash at Beginning of Period Cash at End of Period
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