Question

The following are Coronado Corp.'s comparative balance sheet accounts at December 31, 2017 and 2016, with a column showing the increase (decrease) from 2016 to 2017. COMPARATIVE BALANCE SHEETS (Decrease) $127,300 Cash Accounts recelvable Inventory Property, plant, and equipment Accumulated depreciation Investment in Myers Co. Loan receivable 2017 $821,300 1,124,400 1,852,600 3,300,400 2016 $694,000 1,158,200 1,702,600 2,951,400 (33,800 ) 150,000 349,000 (126,400) 38,500 250,100 (1,174,500) (1,048,100) 312,300 250,100 $6,486,600 273,800 Total assets $754,700 Accounts payable Income taxes payable Dividends payable Lease liabilility Common stock, $1 par Paid-in capital in excess of par-common stock Retained earnings $959,800 50,100 99,100 $1,019,600 29,800 79,400 408,500 500,000 1,504,000 2,945,300 $6,486,600 $59,800 (20,300) (19,700 ) 408,500 500,000 1,504,000 2,618,900 $5,731,900 326,400 $754,700 Total liabilities and stockholders' equity Additional information: 1, on December 31, 2016, Corrado acquired 2S% of Myers Co.'s common stock for $273,800 On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,095,200. Myers reported income of $154,000 for the year ended December 31, 2017. No dividend was paid on Myers's common stock during the year 2. During 2017, Coronado loaned $309,100 to TLC Co., an unrelated company. TLC made the first semiannual 3. On January 2, 2017, Coronado sold equipment costing $59,500, with a carrying amount of $38,400, for $39,900 4. On December 31, 2017, principal repayment of $59,000, plus interest at 10%, on December 31, 2017 Coronado entered into a capital lease for an office building. The present value of the annual rental payments is $408,500, which equals the fair value of the building. Coronado made the first rental 5. 6. payment of $59,800 when due on January 2, 2018. Net income for 2017 was $405,800. Coronado declared and paid the following cash dividends for 2017 and 2016. 2017 2016 Declared December 15, 2017 December 15, 2016 Paid February 28, 2018 February 28, 2017 Amount $79,400 Prepare a statement of cash flows for Coronado Corp. for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash fnow with either a - sign o.9. -15,000 or in parenthesis e $99,100 (15,000).) CORONADO CORP Statement of Cash Flows

Answer 1

Coronado corp's

Cash flow statement for the year ended December 31,2017

Cash flow from operating activities	Amount($)	Amount($)
Net Income		405800
Adjustments for :
Depreciation (working 1)	147500
Gain on sale of equipment (working 2)	-1500
Earnings from Myers Co. (working 3)	-38500
(+) decrease in accounts recievable	33800
(-) increase in inventory	-150000
(+)increase in accounts payable	59800
(-)decrease in income tax payable	-20300	30800
Net cash flow from operating activities		436600
cash flows from investing activities
proceeds from sale of equipment	39900
Loan to TLC co.	-309100
principal payment of loan to TLC	59000
Net cash flows from investing Activities		-210200
cash flows from financing activities
Dividends paid	-99100
Net cash flow from financing activities		-99100
Net increase / (decrease) in cash		127300
opening cash balance		694000
Closing cash balance		821300

Working Notes :

1) increase in accumulated depreciation 126400

accumulated depreciation on sold equipment  

cost of the equipment 59500

(-)carrying value 38400

21100

Total accumulated depreciation (21100+126400) = 147500

2) Gain on epuipment sale (39900-38400) = 1500

3) Earning from Myers co. 154000 X 25/100 = 38500