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Following are selected balance sheet accounts of Del Conte Corp. at December 31, 2018 and 2017, and the increases or decreases in each account from
Following are selected balance sheet accounts of Del Conte Corp. at December 31, 2018 and 2017, and the increases or decreases in each account from 2017 to 2018. Also presented is selected income statement information for the year ended December 31, 2018, and additional information. Selected Balance Sheet Accounts 2018 2017 (Decrease) Assets Accounts receivable Property, plant, and equipment Accumulated depreciation Liabilities and StockholdeEquity Bonds payable Dividends payable Common stock, $1 par Addi tional paid-in capital Retained earnings $46, 000 30, 000 253, 000 (190, 000) (173, 000) $16, 000 36, 000 17, 000 289, 000 67, 000 11,000 34, 000 12, 000 116, 000 58, 000 7, 400 25, 000 5, 400 97, 000 9, 000 3, 600 9, 000 6, 600 19, 000 Selected Income Statement Information for the Year Ended December 31, 2018 Sales revenue Depreci1ation Gain on sale of equipment Net income $ 167, 000 45, 000 16, 000 40, 000 Additional information: a. Accounts receivable relate to sales of merchandise. b. During 2018, equipment costing $52,000 was sold for cash. c. During 2018, bonds payable with a face value of $32,000 were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium. Requlrec Items 1 through 5 represent activities that will be reported in Del Conte's statement of cash flows for the year ended December 31 2018. The following two responses are required for each item: a. Determine the amount that should be reported in Del Conte's 2018 statement of cash flows. b. Select the category (i.e., O - Operating activity, I Investing activity and F- Financing activity) in which the amount should be reported in the statement of cash flows. moun ategory 1. Cash collections from customers (direct method) Payments for purchase of property, plant, and 2. equipment 3. Proceeds from sale of equipment. 4. Cash dividends paid 5. Redemption of bonds payable
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