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*Problem 23-6 Comparative balance sheet accounts of Marin Inc. are presented below. MARIN INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2017 AND 2016
*Problem 23-6 Comparative balance sheet accounts of Marin Inc. are presented below. MARIN INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2017 AND 2016 December 31 Debit Accounts Cash Accounts Receivable Inventory Equity investments Machinery Buildings Land 2017 2016 $33,800 59,900 24,100 38,600 18,800 56,000 7,600 $271,500 $238,800 $42,300 71,100 30,100 22,400 30,200 67,800 7,600 Credit Accounts Allowance for Doubtful Accounts Accumulated Depreciation-Machinery Accumulated Depreciation-B Accounts Payable Accrued Payables Long-Term Notes Payable Common Stock, no-par Retained Earnings $1,600 2,300 9,100 24,700 2,600 30,900 125,000 42,600 $271,500 $238,800 $2,200 5,700 13,300 35,300 3,500 20,800 150,000 40,700 uildings Additional data (ignoring taxes): 1. Net income for the year was $44,300 2. Cash dividends declared and paid during the year were $21,200 3. A 20% stock dividend was declared during the year, $25,000 of retained earnings was capitalized. 4. Equity investments (level of ownership is less than 20%) that cost $24,900 were sold during the year for $28,700. No unrealized gains and losses were recorded on these investments in 2017. 5. Machinery that cost $3,700, on which $750 of depreciation had accumulated, was sold for $2,150. Marin's 2017 income statement follows (ignoring taxes) Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses (includes $8,350 depreciation and $5,823 bad debts) Income from operations Other: Gain on sale of investments $543,100 381,100 162,000 120,700 41,300 $3,800 Loss on sale of machinery (800) 3,000 $44,300 Net income (a) Compute net cash flow from operating activities using the direct method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net cash flow from operating activitiess (b) Prepare a statement of cash flows 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 MARIN INC. Statement of Cash Flows Met Adjustments to reconcile net income to
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