Paddleboard Inc. began operations on January 1, 2016. Its post-closing trial balance at December 31, 2016 and
Question:
Paddleboard Inc. began operations on January 1, 2016. Its post-closing trial balance at December 31, 2016 and 2017, is shown below along with some other information.
Paddleboard Inc. | ||
Income Statement | ||
For Year Ended December 31, 2017 | ||
(000s) | ||
Revenues: | ||
Sales | $3,814 | |
Cost of goods sold | 1,566 | |
Gross Profit | 2,248 | |
Expenses: | ||
Other expenses | $850 | |
Depreciation expense | 110 | |
| ||
Total operating expenses | 960 | |
| ||
Profit from operations | 1,288 | |
Income tax expense | 288 | |
Profit | $1,000 | |
| ||
|
Paddleboard Inc. | ||
Post-Closing Trial Balance | ||
(000s) | ||
December 31 | ||
Account | 2017 | 2016 |
Cash | $3,180 | $1,870 |
Receivables | 2,820 | 2,110 |
Merchandise inventory | 2,590 | 3,160 |
Property, plant and equipment | 3,070 | 2,750 |
Accumulated depreciation | 1,950 | 1,840 |
Investments | 2,110 | 2,270 |
Accounts payable | 1,950 | 1,470 |
Accrued liabilities | 320 | 480 |
Bonds payable | 2,530 | 2,700 |
Common shares | 3,070 | 2,600 |
Retained earnings | 3,950 | 3,070 |
|
Other information: a. All accounts payable balances result from merchandise purchases. b. All sales are credit sales. c. All credits to accounts receivable are receipts from customers. d. All debits to accounts payable result from payments for merchandise. e. All other expenses are cash expenses.
Required: Prepare a statement of cash flows for 2017 using the direct method to report cash inflows and outflows from operating activities. (List any deduction in cash and cash outflows as negative amounts. Enter amounts in thousands, not in dollar.)
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill