Chapter 23, Exercise 23-15 (Wileyplus, Intermediate Accounting, Kieso) I need he

Question

Chapter 23, Exercise 23-15 (Wileyplus, Intermediate Accounting, Kieso)

I need help finding NET INCOME, LOSS ON SALE OF INVESTMENTS, and LOSS ON SALE OF PLANT ASSETS. See Problem below:

Presented below are data taken from the records of Sheffield Company..

Exercise 23-15 Presented below are data taken from the records of Sheffield Company December 31, 2017 December 31, 2016 Cash Current assets other than cash Long-term investments Plant assets $14,900 84,300 9,900 332,400 $441,500 $8,000 59,700 53,100 216,800 $337,600 Accumulated depreciation Current liabilities Bonds payable Common stock Retained earnings $20,200 39,800 74,500 253,200 53,800 $441,500 $40,400 21,900 0 253,200 22,100 $337,600 Additional information: 1. Held-to-maturity securities carried at a cost of $43,200 on December 31, 2016, were sold in 2017 for $34,000. The loss (not unusual) was incorrectly charged directly to Retained Earnings 2. Plant assets that cost $49,500 and were 80% depreciated were sold during 2017 for $8,100. The loss was incorrectly charged directly to Retained Earnings 3. Net income as reported on the income statement for the year was $56,700 4. Dividends paid amounted to $14,000 5. Depreciation charged for the year was $19,400 Prepare a statement of cash flows for the year 2017 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).

Explanation / Answer

CASH FLOW STATEMENT: Cash flows from Operating Activities: Net Income 56700 Adjustment to reconcile net income with casshfows Depreciation 19400 Loss on Sale of Investment charged to RE 0 Loss on sale of plant charged to RE 0 Increase in current assets (84300-59700) -24600 Increasse in Current Liabilities 17900 12700 Net cash provided from Operating activities 69400 Cash flows from Investing activities: Sale of Investment 34000 Sale of plant 8100 Purchase of plant -165100 Net cash used in Investing activities -123000 Cashflows from Financing activities: Dividend paid -14000 Bonds issue 74500 Net cash provided from financing activities 60500 Net increase in Cash 6900 Add: Beginning balance of cash 8000 Ending balance of cash and cash equivalent 14900 ** Plant on Dec 31 2016 216800 Less: Cost of plant sold -49500 167300 Plant as on Dec 31 2017 332400 Plant assets purchases during 2017 165100

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