You have completed the field work in connection with your audit of Grouper Corporation for the year ended December 31, 2017. The balance sheet accounts at the beginning and end of the year are shown below. Dec. 31, 2017 Cash Dec. 31, 2016 $351.640 416,540 719,800 9.440 Accounts receivable Inventory Prepaid expenses Investment in subsidiary Cash surrender value of life insurance Machinery Buildings Land Patents Copyrights Bond discount and i t $327,922 553,920 875,206 14,160 130,390 2,719 244,260 631,536 61.950 81,420 47,200 5.312 Increase or (Decrease) ($ 23,718) 137,380 155,406 4,720 130,390 595 20.060 150,214 2,124 224,200 481.322 61.950 75,520 50,000 5.900 (11.800) 5.312 5574.450 92.975.995 52.401,536 01.98 $12567 Income taxes payable Accounts payable Dividends payable Bonds payable $106.495 353.150 2.500 147.500 Bond discount and issue cost 5,312 $2,975,995 0 $2,401,536 5,312 $574,459 $93,928 330,400 $106,495 353,150 82,600 147,500 Income taxes payable Accounts payable Dividends payable Bonds payable-8% Bonds payable-12% Allowance for doubtful accounts Accumulated depreciation--buildings Accumulated depreciation--machinery Premium on bonds payable Common stock-no par Paid-in capital in excess of par-common stock Retained earnings--unappropriated 41,654 500,320 204,140 118,000 47,200 472,000 153,400 $12,567 22,750 82,600 147,500 (118,000) (5,546) 28,320 50,740 (2,832) (325,860 ) 128,620 554,600 $574,459 2,832 1,714,776 1,387,916 128,620 23,600 $2,975,995 (531,000) $2,401,536 January March April STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2017 1, 2017 Balance (deficit) 31, 2017 Net income for first quarter of 2017 1, 2017 Transfer from pald-in capital Balance 31, 2017 Net income for last three quarters of 2017 $(531,000) 29,500 501,500 December 106,200 DOMO The Come Tr e e quarters OZOTT Dividend dedared-payable January 21, 2018 Balance 700,200 (82,600 ) $23,600 Your working papers from the audit contain the following information: 1. On April 1, 2017, the existing deficit was written off against paid-in capital created by reducing the stated value of the no par stock. 2. On November 1, 2017, 34,928 shares of no-par stock were sold for $303,260. The board of directors voted to regard $5 per share as stated capital 3. A patent was purchased for $17,700. 4. During the year, machinery that had a cost basis of $19,352 and on which there was accumulated depreciation of $6,136 was sold for $10,620. No other plant assets were sold during the year. 5. The 12%, 20-year bonds were dated and issued on January 2, 2005. Interest was payable on June 30 and December 31. They were sold originally at 106. These bonds were redeemed at 100.9 plus accrued interest on March 31, 2017 6. The 8%, 40-year bonds were dated January 1, 2017, and were sold on March 31 at 97 plus accrued interest. Interest is payable semiannually on June 30 and December 31. Expense of issuance was $900 7. Grouper Corporation acquired 70% control in Crimson Company on January 2, 2017, for $118,000. The income statement of Crimson Company for 2017 shows a net income of $17,700 8. Major repairs to buildings of $8.496 were charged to Accumulated Depreciation-Buildings 9. Interest paid in 2017 was $12,390 and income taxes paid were $40,120. From the information given prepare a statement of cash flows using the indirect method. A worksheet is not necessary, but the principal computations should be supported by schedules or general ledger accounts. The company uses straight line amortization for bond interest. (Round answers to decimal place 0 0 0 Show amounts that decrease cash flow with either a 15.000 ar in parenthesis .. (15.000).) GROUPER CORPORATION Steel Cash Flow GROUPER CORPORATION Statement of Cash Flows (Indirect Method) Adjustments to reconcile net income to CALCULATOR FULL SC Supplemental disclosures of cash flow information: You have completed the field work in connection with your audit of Grouper Corporation for the year ended De end of the year are shown below. Cash Accounts receivable Inventory Prepaid expenses Investment in subsidiary Cash surrender value of life insurance Machinery Buildings Land Patents Copyrights Bond discount and issue cost Dec. 31, Dec. 31, 2017 2016 $327,922 $351,640 553,920 416,540 875,206 719,800 14,160 9,440 130,390 2,719 2,124 244,260 224,200 631,536 481,322 61,950 61,950 81,420 75,520 47,200 59,000 5,3120 $2,975,995 $2,401,536 Increase or (Decrease) ($23,718 ) 137,380 155,406 4,720 130,390 595 20,060 150,214 5,900 (11,800) 5,312 $574,459 Income taxes payable Accounts payable Dividends payable Bonds payable-8% $106,495 $93,928 353,150 330,400 82,600 147,5000 $12,567 22,750 82,600 147.500 0 $93,928 330,400 $106,495 353,150 82,600 147,500 Income taxes payable Accounts payable Dividends payable Bonds payable8% Bonds payable-12% Allowance for doubtful accounts Accumulated depreciation-buildings Accumulated depreciation-machinery Premium on bonds payable Common stock-no par Paid-in capital in excess of par-common stock Retained earnings-unappropriated 41,654 500,320 204,140 118,000 47,200 472,000 153,400 2,832 1,714,776 $12,567 22,750 82,600 147,500 (118,000) (5,546 ) 28,320 50,740 (2,832) (326,860 ) 128,620 554,600 $574,459 0 1,387,916 128,620 23,600 $2,975,995 (531,000) $2,401,536 January March April 1, 2017 31, 2017 1, 2017 STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2017 Balance (deficit) Net income for first quarter of 2017 Transfer from paid-in capital Balance Net income for last three quarters of 2017 Dividend declared-payable January 21, 2018 $(531,000 ) 29,500 501,500 December 31, 2017 106,200 (82,600 ) 204,140 umulated depreciation-machinery emium on bonds payable pmmon stock-no par aid-in capital in excess of par-common stock ketained earnings-unappropriated 1,387,916 128,620 23,600 $2,975,995 153,400 2,832 1,714,776 0 (531,000) $2,401,536 50,740 (2,832) (326,860 ) 128,620 554,600 $574,459 January March April 1, 2017 31, 2017 1, 2017 STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2017 Balance (deficit) Net income for first quarter of 2017 Transfer from paid-in capital Balance Net income for last three quarters of 2017 Dividend declared-payable January 21, 2018 Balance $(531,000) 29,500 501,500 December 31, 2017 106,200 (82,600) $ 23,600 Your working papers from the audit contain the following information: You have completed the field work in connection with your audit of Grouper Corporation for the year ended December 31, 2017. The balance sheet accounts at the beginning and end of the year are shown below. Dec. 31, 2017 Cash Dec. 31, 2016 $351.640 416,540 719,800 9.440 Accounts receivable Inventory Prepaid expenses Investment in subsidiary Cash surrender value of life insurance Machinery Buildings Land Patents Copyrights Bond discount and i t $327,922 553,920 875,206 14,160 130,390 2,719 244,260 631,536 61.950 81,420 47,200 5.312 Increase or (Decrease) ($ 23,718) 137,380 155,406 4,720 130,390 595 20.060 150,214 2,124 224,200 481.322 61.950 75,520 50,000 5.900 (11.800) 5.312 5574.450 92.975.995 52.401,536 01.98 $12567 Income taxes payable Accounts payable Dividends payable Bonds payable $106.495 353.150 2.500 147.500 Bond discount and issue cost 5,312 $2,975,995 0 $2,401,536 5,312 $574,459 $93,928 330,400 $106,495 353,150 82,600 147,500 Income taxes payable Accounts payable Dividends payable Bonds payable-8% Bonds payable-12% Allowance for doubtful accounts Accumulated depreciation--buildings Accumulated depreciation--machinery Premium on bonds payable Common stock-no par Paid-in capital in excess of par-common stock Retained earnings--unappropriated 41,654 500,320 204,140 118,000 47,200 472,000 153,400 $12,567 22,750 82,600 147,500 (118,000) (5,546) 28,320 50,740 (2,832) (325,860 ) 128,620 554,600 $574,459 2,832 1,714,776 1,387,916 128,620 23,600 $2,975,995 (531,000) $2,401,536 January March April STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2017 1, 2017 Balance (deficit) 31, 2017 Net income for first quarter of 2017 1, 2017 Transfer from pald-in capital Balance 31, 2017 Net income for last three quarters of 2017 $(531,000) 29,500 501,500 December 106,200 DOMO The Come Tr e e quarters OZOTT Dividend dedared-payable January 21, 2018 Balance 700,200 (82,600 ) $23,600 Your working papers from the audit contain the following information: 1. On April 1, 2017, the existing deficit was written off against paid-in capital created by reducing the stated value of the no par stock. 2. On November 1, 2017, 34,928 shares of no-par stock were sold for $303,260. The board of directors voted to regard $5 per share as stated capital 3. A patent was purchased for $17,700. 4. During the year, machinery that had a cost basis of $19,352 and on which there was accumulated depreciation of $6,136 was sold for $10,620. No other plant assets were sold during the year. 5. The 12%, 20-year bonds were dated and issued on January 2, 2005. Interest was payable on June 30 and December 31. They were sold originally at 106. These bonds were redeemed at 100.9 plus accrued interest on March 31, 2017 6. The 8%, 40-year bonds were dated January 1, 2017, and were sold on March 31 at 97 plus accrued interest. Interest is payable semiannually on June 30 and December 31. Expense of issuance was $900 7. Grouper Corporation acquired 70% control in Crimson Company on January 2, 2017, for $118,000. The income statement of Crimson Company for 2017 shows a net income of $17,700 8. Major repairs to buildings of $8.496 were charged to Accumulated Depreciation-Buildings 9. Interest paid in 2017 was $12,390 and income taxes paid were $40,120. From the information given prepare a statement of cash flows using the indirect method. A worksheet is not necessary, but the principal computations should be supported by schedules or general ledger accounts. The company uses straight line amortization for bond interest. (Round answers to decimal place 0 0 0 Show amounts that decrease cash flow with either a 15.000 ar in parenthesis .. (15.000).) GROUPER CORPORATION Steel Cash Flow GROUPER CORPORATION Statement of Cash Flows (Indirect Method) Adjustments to reconcile net income to CALCULATOR FULL SC Supplemental disclosures of cash flow information: You have completed the field work in connection with your audit of Grouper Corporation for the year ended De end of the year are shown below. Cash Accounts receivable Inventory Prepaid expenses Investment in subsidiary Cash surrender value of life insurance Machinery Buildings Land Patents Copyrights Bond discount and issue cost Dec. 31, Dec. 31, 2017 2016 $327,922 $351,640 553,920 416,540 875,206 719,800 14,160 9,440 130,390 2,719 2,124 244,260 224,200 631,536 481,322 61,950 61,950 81,420 75,520 47,200 59,000 5,3120 $2,975,995 $2,401,536 Increase or (Decrease) ($23,718 ) 137,380 155,406 4,720 130,390 595 20,060 150,214 5,900 (11,800) 5,312 $574,459 Income taxes payable Accounts payable Dividends payable Bonds payable-8% $106,495 $93,928 353,150 330,400 82,600 147,5000 $12,567 22,750 82,600 147.500 0 $93,928 330,400 $106,495 353,150 82,600 147,500 Income taxes payable Accounts payable Dividends payable Bonds payable8% Bonds payable-12% Allowance for doubtful accounts Accumulated depreciation-buildings Accumulated depreciation-machinery Premium on bonds payable Common stock-no par Paid-in capital in excess of par-common stock Retained earnings-unappropriated 41,654 500,320 204,140 118,000 47,200 472,000 153,400 2,832 1,714,776 $12,567 22,750 82,600 147,500 (118,000) (5,546 ) 28,320 50,740 (2,832) (326,860 ) 128,620 554,600 $574,459 0 1,387,916 128,620 23,600 $2,975,995 (531,000) $2,401,536 January March April 1, 2017 31, 2017 1, 2017 STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2017 Balance (deficit) Net income for first quarter of 2017 Transfer from paid-in capital Balance Net income for last three quarters of 2017 Dividend declared-payable January 21, 2018 $(531,000 ) 29,500 501,500 December 31, 2017 106,200 (82,600 ) 204,140 umulated depreciation-machinery emium on bonds payable pmmon stock-no par aid-in capital in excess of par-common stock ketained earnings-unappropriated 1,387,916 128,620 23,600 $2,975,995 153,400 2,832 1,714,776 0 (531,000) $2,401,536 50,740 (2,832) (326,860 ) 128,620 554,600 $574,459 January March April 1, 2017 31, 2017 1, 2017 STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2017 Balance (deficit) Net income for first quarter of 2017 Transfer from paid-in capital Balance Net income for last three quarters of 2017 Dividend declared-payable January 21, 2018 Balance $(531,000) 29,500 501,500 December 31, 2017 106,200 (82,600) $ 23,600 Your working papers from the audit contain the following information