Problem 23-6 Comparative balance sheet accounts of Riverbed Inc. are presented below RIVERBED 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 $41,600 70,500 29,700 22,300 29,900 67,600 $33,700 60,600 23,700 38,900 18,800 56,300 7,600 $269,200 $239,600 7,600 Credit Accounts Allowance for Doubtful Accounts Accumulated Depreciation-Machinery Accumulated Depreciation-Buildings Accounts Payable Accrued Payables Long-Term Notes Payable Common Stock, no-par Retained Earnings $1,500 2,300 9,000 24,800 2,600 31,300 125,000 43,100 $269,200 $239,600 $2,200 5,600 13,500 34,700 3,300 20,900 150,000 39,000 Additional data (ignoring taxes) Additional data (ignoring taxes): 1. Net income for the year was $41,800 2. Cash dividends declared and paid during the year were $20,900 3. A 20% stock dividend was declared during the year, $25,000 of retained earnings was capitalized Equity investments (level of ownership is less than 20%) that cost $25,000 were sold during the year for $28,800. No unrealized gains and losses were 4. recorded on these investments in 2017 5. Machinery that cost $3,700, on which $750 of depreciation had accumulated, was sold for $2,150 Riverbed's 2017 income statement follows (ignoring taxes) Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses (includes $8,550 depreciation and $4,997 bad debts) Income from operations Other: Gain on sale of investments $536,900 378,400 158,500 119,700 38,800 $3,800 (800) Loss on sale of machinery 3,000 $41,800 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 activities (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).) RIVERBED INC. Statement of Cash Flows (Indirect Method) Adjustments to reconcile net income to Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT LINK TO TEXT Problem 23-6 Comparative balance sheet accounts of Riverbed Inc. are presented below RIVERBED 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 $41,600 70,500 29,700 22,300 29,900 67,600 $33,700 60,600 23,700 38,900 18,800 56,300 7,600 $269,200 $239,600 7,600 Credit Accounts Allowance for Doubtful Accounts Accumulated Depreciation-Machinery Accumulated Depreciation-Buildings Accounts Payable Accrued Payables Long-Term Notes Payable Common Stock, no-par Retained Earnings $1,500 2,300 9,000 24,800 2,600 31,300 125,000 43,100 $269,200 $239,600 $2,200 5,600 13,500 34,700 3,300 20,900 150,000 39,000 Additional data (ignoring taxes) Additional data (ignoring taxes): 1. Net income for the year was $41,800 2. Cash dividends declared and paid during the year were $20,900 3. A 20% stock dividend was declared during the year, $25,000 of retained earnings was capitalized Equity investments (level of ownership is less than 20%) that cost $25,000 were sold during the year for $28,800. No unrealized gains and losses were 4. recorded on these investments in 2017 5. Machinery that cost $3,700, on which $750 of depreciation had accumulated, was sold for $2,150 Riverbed's 2017 income statement follows (ignoring taxes) Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses (includes $8,550 depreciation and $4,997 bad debts) Income from operations Other: Gain on sale of investments $536,900 378,400 158,500 119,700 38,800 $3,800 (800) Loss on sale of machinery 3,000 $41,800 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 activities (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).) RIVERBED INC. Statement of Cash Flows (Indirect Method) Adjustments to reconcile net income to Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT LINK TO TEXT