Problem 23-1 Your answer is partially correct. Try again. The following are Coronado 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 2016 Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Investment in Myers Co. Loan receivable Total assets 2017 $821,300 1,118,800 1,863,300 3,292,300 (1,153,700 ) 307,300 248,800 $6,498,100 $698,500 1,165,800 1,709,100 2,950,900 (1,030,800 ) 274,600 Increase (Decrease) $122,800 (47,000) 154,200 341,400 (122,900 ) 32,700 248,800 $730,000 $5,768,100 $951,500 49,600 100,200 $59,000 (19,300 ) (20,200 ) 401,900 Accounts payable Income taxes payable Dividends payable Lease liabililty Common stock, $1 par , Paid-in capital in excess of par-common stock Retained earnings Total liabilities and stockholders' equity $1,010,500 30,300 80,000 401,900 500,000 1,496,000 2,979,400 $6,498,100 500,000 1,496,000 2,670,800 $5,768,100 308,600 $730,000 Additional information: 1. On December 31, 2016, Coronado acquired 25% of Myers Co.'s common stock for $274,600. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,098,400. Myers reported income of $130,800 for the year ended December 31, 2017. No dividend was paid on Myers's common stock during the year. 2. During 2017, Coronado loaned $301,400 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $52,600, plus interest at 10%, on December 31, 2017. 3. On January 2, 2017, Coronado sold equipment costing $60,500, with a carrying amount of $38,100, for $40,000 cash. 4. On December 31, 2017, Coronado entered into a capital lease for an office building. The present value of the annual rental payments is $401,900, which equals the fair value of the building. Coronado made the first rental payment of $60,600 when due on January 2, 2018. 5. Net income for 2017 was $388,600. 6. Coronado declared and paid the following cash dividends for 2017 and 2016. Declared Paid Amount 2017 December 15, 2017 February 28, 2018 $80,000 2016 December 15, 2016 February 28, 2017 $100,200 Prepare a statement of cash flows for Coronado 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).) CORONADO CORP. Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities 388,600 Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation 145,300 Decrease in Accounts Receivable 47,000 Increase in Inventory -154,200 Increase in Accounts Payable 59,000 Gain on Sale of Equipment -1,900 Decrease in Income Taxes Payable -19,300 Equity in Earnings of Myers Co. -32,700 43200 Net Cash Provided by Operating Activities 431800 Net Cash Provided by Operating Activities 431800 X Cash Flows from Investing Activities Proceeds from Sale of Equipment 40,000 Loan to TLC Co. -301,400 Principal Payment of Loan Receivable 52,600 Net Cash Used by Investing Activities -208800 Cash Flows from Financing Activities Dividends Paid -100,200 Net Cash Used by Financing Activities -100,200 Net Increase in Cash 122800 698500 Cash, January 1, 2017 Cash, December 31, 2017