Question

Condensed tinancial data of Coronado Company for 2017 and 2016 are presented below. 2016 $1,160 CORONADO COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 Cash $1,770 Receivables 1,740 Inventory 1,620 Plant assets 1,930 Accumulated depreciation (1,250 ) Long-term investments (held-to-maturity) 1,290 $7,100 1,280 1,880 1,670 (1,190) 1,420 $6,220 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1,220 190 1,370 1,930 2,390 $7,100 $920 240 1,570 1,730 1.760 $6,220 CORONADO COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017

Answer 1

Answer:

CORONADO COMPANY
Statement of Cash Flows
For the year ended Dec 31,2017
(Indrect method)
Cash flows from operating activities:
Net income		$890
Adjustments to reconcile net income
to net cash from operating activities:
Depreciation expense (1,250-1,190)	$60
Gain on sale of investments	($80)
Increase in receivables	($460)
Decrease in inventory	$260
Incresae in accounts payable	$300
Decrease in accrued liabilities	($50)
		$30
Net cash flows from operating activities (i)		$920
Cash flows from investing activities:
Purchase of plant assets	($190)
Sale of investments (130+80 gain)	$210
Net cash flows from investing activities (ii)		$20
Cash flows from financing activities:
Redemption of bonds	($200)
Issuance of common stock	$130
Payment of cash dividends	($260)
Net cash flows from financing activities (iii)		($330)
Net increase (decrease) in cash (i+ii+iii)		$610
Cash balance, Dec 31,2016		$1,160
Cash balance, Dec 31,2017		$1,770
Non-Cash items:
Plant assets acquired by issuing common stock		$70

Calculations:

Common stock, Dec 31,2017	$1,930
Common stock, Dec 31,2016	($1,730)
Change	$200
Common stock issue for plant	($70)
Common stock issued for cash	$130
Plant assets, Dec 31,2017	$1,930
Plant assets, Dec 31,2016	($1,670)
Change	$260
Plant assets acquired by common stock	($70)
Plant assets acquired by cash	$190