Question

Question 3 Condensed financial data of Windsor Company for 2017 and 2016 are presented below WINDSOR COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 Cash Receivables Inventory 2016 $1,790 $1,170 1,780 1,310 1,580 1,900 1,9001,720 Plant assets Accumulated depreciation Long-term investments (held-to-maturity) (1,180) (1,140) 1,420 $7,180 $6,380 1,310 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1,220 210 $880 240 1,380 1,5s 1,930 1,660 2,440 2,050 $7,180 $6,380

Answer 1

	Cash flow direct method
	Sales	6690
	Adjustments to a cash basis
	Accounts receivable as per 2016	1310
	Accounts receivable as per 2017	-1780	6220
Less	Cost of goods sold	4650
	Adjustments to a cash basis
	Inventory as per 2016	-1900
	Inventory as per 2017	1580
	Accounts payable as per 2016	880
	Accounts payable as per 2017	-1220	3990
	Operating expense less depreciation and amortization	890
	Adjustments to a cash basis
	Prepaid expense 2016
	Prepaid expense 2017
	Accrued expense payable 2016	240
	Accrued expense payable 2017	-210	920
	Income tax expense		550
	Cash flow from operating activities		760
	Cash flow statement
	Cash flow operating activities
	Cash collected from customer		6220
Less	Cash paid
	Cash paid to supplies	3990
	Operating expense paid	920
	Income tax paid	550	5460
	Cash flow from operating activities		760
	Cash flow from Investing activities
	Long term investment sold	200
	Equipment purchased	-110
			90
	Cash flow from Financing activities
	Issue of common stock	200
	Dividend paid	-260
	Bonds paid	-170
			-230
	Net Cash and cash equivalent		620
Add	Beginning cash and cash equivalent		1170
	Ending cash and cash equivalent		1790