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Exercise 23B-17 Pina Inc., had the following condensed balance sheet at the end

ID: 2534740 • Letter: E

Question

Exercise 23B-17

Pina Inc., had the following condensed balance sheet at the end of operations for 2016.

PINA INC.
BALANCE SHEET
DECEMBER 31, 2016

$8,500

$14,900

29,200

25,400

19,900

25,000

68,200

75,000

39,700

25,200

$165,500

$165,500


During 2017, the following occurred.

8.Both current assets (other than cash) and current liabilities remained at the same amount.

Prepare a statement of cash flows for 2017 using the indirect method.

Prepare the condensed balance sheet for Pina Inc. as it would appear at December 31, 2017

PINA INC.
BALANCE SHEET
DECEMBER 31, 2016

Cash

$8,500

Current liabilities

$14,900

Current assets other than cash

29,200

Long-term notes payable

25,400

Equity invesments

19,900

Bonds payable

25,000

Plant assets (net)

68,200

Common stock

75,000

Land

39,700

Retained earnings

25,200

$165,500

$165,500

Explanation / Answer

PINA INC. Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities: Net income 30200 Adjustments to reconcile net income to net cash provided by operations: Depreciation 13600 Gain on sale of investments -2000 11600 Net cash provided by operating activities 41800 Cash Flows from Investing Activities: Sale proceeds from investments 12700 Purchase of land -8900 Net cash provided by investing activities 3800 Cash Flows from Financing Activities Issuance of common stock 10000 Redemption of bonds payable -15000 Payment of cash dividends -9400 Net cash used by financing activities -14400 Net increase (decrease) in cash 31200 Cash balance, December 31, 2016 8500 Cash balance, December 31, 2017 39700 Non-cash investing and financing activities: Land purchased by issuance of bonds payable of $22600.