Problem 23-1

The following are Nash Corp.'s comparative balance sheet accounts at December 31, 2017 and 2016, with a column showing the increase (decrease) from 2016 to 2017.

COMPARATIVE BALANCE SHEETS

2017

2016

Increase

(Decrease)

Cash$822,700

$706,000

$116,700

Accounts receivable1,130,000

1,174,600

(44,600

)Inventory1,857,900

1,710,100

147,800

Property, plant, and equipment3,314,200

2,974,500

339,700

Accumulated depreciation(1,173,300

)(1,036,900

)(136,400

)Investment in Myers Co.307,900

276,600

31,300

Loan receivable251,300

251,300

Total assets$6,510,700

$5,804,900

$705,800

Accounts payable$1,018,900

$952,200

$66,700

Income taxes payable29,700

49,600

(19,900

)Dividends payable80,200

100,500

(20,300

)Lease liabililty400,300

400,300

Common stock, $1 par500,000

500,000

Paid-in capital in excess of parcommon stock1,505,000

1,505,000

Retained earnings2,976,600

2,697,600

279,000

Total liabilities and stockholders' equity$6,510,700

$5,804,900

$705,800

Additional information:

1.On December 31, 2016, Nash acquired 25% of Myers Co.'s common stock for $276,600. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,106,400. Myers reported income of $125,200for the year ended December 31, 2017. No dividend was paid on Myers's common stock during the year.2.During 2017, Nash loaned $299,500 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $48,200, plus interest at 10%, on December 31, 2017.3.On January 2, 2017, Nash sold equipment costing $60,600, with a carrying amount of $38,100, for $40,200 cash.4.On December 31, 2017, Nash entered into a capital lease for an office building. The present value of the annual rental payments is $400,300, which equals the fair value of the building. Nash made the first rental payment of $59,900 when due on January 2, 2018.5.Net income for 2017 was $359,200.6.Nash declared and paid the following cash dividends for 2017 and 2016.

2017

2016

DeclaredDecember 15, 2017December 15, 2016PaidFebruary 28, 2018February 28, 2017Amount$80,200$100,500

Prepare statement of cash flows for Nash Corp. for the year ended December 31, 2017, 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).)

NASHCORP.

Statement of Cash Flows

December 31, 2017

For the Year Ended December 31, 2017

For the Quarter Ended December 31, 2017

Cash, January 1, 2017

Cash, December 31, 2017

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

Net Income

Proceeds from Sale of Equipment

Increase in Accounts Receivable

Depreciation

Gain on Sale of Equipment

Loss on Sale of Equipment

Decrease in Accounts Receivable

Increase in Accounts Payable

Decrease in Accounts Payable

Equity in Earnings of Myers Co.

Increase in Inventory

Loan to TLC Co.

Principal Payment of Loan Receivable

Decrease in Inventory

Decrease in Income Taxes Payable

Increase in Income Taxes Payable

Issuance of Capital Lease Liability for Office Building

Dividends Paid

$

Adjustments to reconcile net income to

Cash, January 1, 2017

Cash, December 31, 2017

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

Decrease in Income Taxes Payable

Proceeds from Sale of Equipment

Decrease in Accounts Payable

Increase in Accounts Receivable

Net Income

Depreciation

Increase in Income Taxes Payable

Gain on Sale of Equipment

Loan to TLC Co.

Equity in Earnings of Myers Co.

Increase in Accounts Payable

Increase in Inventory

Loss on Sale of Equipment

Decrease in Accounts Receivable

Principal Payment of Loan Receivable

Issuance of Capital Lease Liability for Office Building

Dividends Paid

Decrease in Inventory

$

Equity in Earnings of Myers Co.

Issuance of Capital Lease Liability for Office Building

Decrease in Income Taxes Payable

Increase in Inventory

Decrease in Accounts Payable

Dividends Paid

Increase in Income Taxes Payable

Net Income

Loan to TLC Co.

Proceeds from Sale of Equipment

Loss on Sale of Equipment

Decrease in Inventory

Depreciation

Increase in Accounts Payable

Principal Payment of Loan Receivable

Gain on Sale of Equipment

Increase in Accounts Receivable

Decrease in Accounts Receivable

Decrease in Inventory

Loan to TLC Co.

Increase in Accounts Payable

Net Income

Issuance of Capital Lease Liability for Office Building

Principal Payment of Loan Receivable

Decrease in Accounts Payable

Increase in Accounts Receivable

Decrease in Income Taxes Payable

Increase in Income Taxes Payable

Proceeds from Sale of Equipment

Dividends Paid

Depreciation

Decrease in Accounts Receivable

Gain on Sale of Equipment

Increase in Inventory

Loss on Sale of Equipment

Equity in Earnings of Myers Co.

Issuance of Capital Lease Liability for Office Building

Principal Payment of Loan Receivable

Loss on Sale of Equipment

Increase in Accounts Payable

Net Income

Increase in Inventory

Increase in Income Taxes Payable

Decrease in Inventory

Decrease in Accounts Payable

Increase in Accounts Receivable

Depreciation

Loan to TLC Co.

Dividends Paid

Gain on Sale of Equipment

Equity in Earnings of Myers Co.

Decrease in Income Taxes Payable

Proceeds from Sale of Equipment

Decrease in Accounts Receivable

Depreciation

Increase in Inventory

Principal Payment of Loan Receivable

Increase in Income Taxes Payable

Decrease in Inventory

Proceeds from Sale of Equipment

Increase in Accounts Payable

Decrease in Accounts Payable

Dividends Paid

Decrease in Income Taxes Payable

Net Income

Gain on Sale of Equipment

Loss on Sale of Equipment

Equity in Earnings of Myers Co.

Loan to TLC Co.

Issuance of Capital Lease Liability for Office Building

Increase in Accounts Receivable

Decrease in Accounts Receivable

Loan to TLC Co.

Gain on Sale of Equipment

Decrease in Inventory

Principal Payment of Loan Receivable

Loss on Sale of Equipment

Issuance of Capital Lease Liability for Office Building

Proceeds from Sale of Equipment

Decrease in Income Taxes Payable

Increase in Income Taxes Payable

Increase in Accounts Receivable

Dividends Paid

Equity in Earnings of Myers Co.

Increase in Inventory

Net Income

Depreciation

Increase in Accounts Payable

Decrease in Accounts Receivable

Decrease in Accounts Payable

Principal Payment of Loan Receivable

Decrease in Inventory

Decrease in Accounts Payable

Equity in Earnings of Myers Co.

Decrease in Accounts Receivable

Net Income

Dividends Paid

Increase in Accounts Receivable

Decrease in Income Taxes Payable

Loan to TLC Co.

Depreciation

Increase in Income Taxes Payable

Increase in Inventory

Increase in Accounts Payable

Issuance of Capital Lease Liability for Office Building

Proceeds from Sale of Equipment

Gain on Sale of Equipment

Loss on Sale of Equipment

Cash, January 1, 2017

Cash, December 31, 2017

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

Cash, January 1, 2017

Cash, December 31, 2017

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

Increase in Accounts Receivable

Equity in Earnings of Myers Co.

Decrease in Accounts Payable

Decrease in Accounts Receivable

Proceeds from Sale of Equipment

Increase in Inventory

Loan to TLC Co.

Issuance of Capital Lease Liability for Office Building

Decrease in Inventory

Net Income

Gain on Sale of Equipment

Depreciation

Increase in Accounts Payable

Principal Payment of Loan Receivable

Decrease in Income Taxes Payable

Dividends Paid

Loss on Sale of Equipment

Increase in Income Taxes Payable

Increase in Inventory

Decrease in Accounts Payable

Gain on Sale of Equipment

Loan to TLC Co.

Increase in Accounts Receivable

Proceeds from Sale of Equipment

Principal Payment of Loan Receivable

Issuance of Capital Lease Liability for Office Building

Net Income

Dividends Paid

Depreciation

Decrease in Inventory

Increase in Accounts Payable

Loss on Sale of Equipment

Decrease in Income Taxes Payable

Equity in Earnings of Myers Co.

Increase in Income Taxes Payable

Decrease in Accounts Receivable

Loss on Sale of Equipment

Equity in Earnings of Myers Co.

Decrease in Accounts Receivable

Dividends Paid

Depreciation

Increase in Accounts Receivable

Principal Payment of Loan Receivable

Gain on Sale of Equipment

Increase in Inventory

Decrease in Inventory

Proceeds from Sale of Equipment

Increase in Accounts Payable

Decrease in Accounts Payable

Loan to TLC Co.

Decrease in Income Taxes Payable

Increase in Income Taxes Payable

Issuance of Capital Lease Liability for Office Building

Net Income

Cash, January 1, 2017

Cash, December 31, 2017

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

Cash, January 1, 2017

Cash, December 31, 2017

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

Gain on Sale of Equipment

Increase in Income Taxes Payable

Increase in Accounts Receivable

Decrease in Inventory

Dividends Paid

Increase in Accounts Payable

Loss on Sale of Equipment

Loan to TLC Co.

Decrease in Income Taxes Payable

Issuance of Capital Lease Liability for Office Building

Decrease in Accounts Payable

Principal Payment of Loan Receivable

Depreciation

Net Income

Equity in Earnings of Myers Co.

Proceeds from Sale of Equipment

Decrease in Accounts Receivable

Increase in Inventory

Cash, January 1, 2017

Cash, December 31, 2017

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

Cash, January 1, 2017

Cash, December 31, 2017

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

Cash, January 1, 2017

Cash, December 31, 2017

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

Cash, January 1, 2017

Cash, December 31, 2017

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

$

Cash, January 1, 2017

Cash, December 31, 2017

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Noncash Investing and Financing Activities

Proceeds from Sale of Equipment

Net Income

Issuance of Capital Lease Liability for Office Building

Decrease in Accounts Payable

Loan to TLC Co.

Principal Payment of Loan Receivable

Increase in Accounts Payable

Depreciation

Dividends Paid

Gain on Sale of Equipment

Loss on Sale of Equipment

Equity in Earnings of Myers Co.

Decrease in Inventory

Decrease in Income Taxes Payable

Decrease in Accounts Receivable

Increase in Accounts Receivable

Increase in Income Taxes Payable

Increase in Inventory

$