Exercise 23-17

Jobim Inc., had the following condensed balance sheet at the end of operations for 2013.

JOBIM INC. BALANCE SHEET DECEMBER 31, 2013
Cash		$9,000		Current liabilities		$14,850
Current assets other than cash		28,650		Long-term notes payable		25,730
Investments		19,910		Bonds payable		24,810
Plant assets (net)		67,840		Capital stock		75,200
Land		39,950		Retained earnings		24,760
		$165,350				$165,350

During 2014, the following occurred.

1.		A tract of land was purchased for $10,890.
2.		Bonds payable in the amount of $20,010 were retired at par.
3.		An additional $10,500 in capital stock was issued at par.
4.		Dividends totaling $9,333 were paid to stockholders.
5.		Net income was $29,890 after deducting depreciation of $13,040.
6.		Land was purchased through the issuance of $22,670 in bonds.
7.		Jobim Inc. sold part of its investment portfolio for $12,850. This transaction resulted in a gain of $2,260 for the company. The company classifies the investments as available-for-sale.
8.		Both current assets (other than cash) and current liabilities remained at the same amount.

A)Prepare a statement of cash flows for 2014 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

B) Prepare the condensed balance sheet for Jobim Inc. as it would appear at December 31, 2014. (List current assets in the order of Liquidity.)