Condensed financial data of Splish Company for 2017 and 2016 are presented below

Question

Condensed financial data of Splish Company for 2017 and 2016 are presented below.

SPLISH COMPANY
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2017 AND 2016

2017

2016

$1,800

$1,130

1,770

1,320

1,560

1,890

1,900

1,700

(1,220

(1,180

1,300

1,430

$7,110

$6,290

$1,220

$890

190

250

1,410

1,520

1,870

1,730

2,420

1,900

$7,110

$6,290

SPLISH COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2017

$6,860

4,710

2,150

920

1,230

80

1,310

530

260

$520

Additional information:

During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017.

Prepare a statement of cash flows 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).)

SPLISH COMPANY
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2017 AND 2016

2017

2016

Cash

$1,800

$1,130

Receivables

1,770

1,320

Inventory

1,560

1,890

Plant assets

1,900

1,700

Accumulated depreciation

(1,220

)

(1,180

) Long-term investments (held-to-maturity)

1,300

1,430

$7,110

$6,290

Accounts payable

$1,220

$890

Accrued liabilities

190

250

Bonds payable

1,410

1,520

Common stock

1,870

1,730

Retained earnings

2,420

1,900

$7,110

$6,290

Cash Flows from Investing Activitles Sale of Investments 210 Purchase of Plant Assets 400 Net Cash Provided by Financing Activitles 610 Cash Flows from Financing Activities Redemption of Bonds Payable (110) Payment of Cash Dividends 260 Issuance of Capital Stock (140) Net Cash Provided by Financing Activitles 10 Net Increase in Cash 670 Cash at Beginning of Period 1510 2000 Cash at End of Period Noncash Investing and Financing Activities Issuance of Common Stock for Plant Assets 70

Explanation / Answer

Statement of cash flow cAsh from operating activities net income for the year 780 Adjustments to reconcile net income depreciation expense 40 Gain on sale of investments -80 increase in receivables -450 decrease in inventory 330 increase in accounts payable 330 Decrease in accrued liabilities -60 Net cash flow from operating activities 890 Cash flow from investing activities cash from sale of investment 210 purchase of plant assets (200-70) -130 Cash flow from investing activities 80 Cash flow from financing activity cash dividend -260 Redemption of bonds payable -110 Cash from stock issue 70 Cash used by financing activities -300 net increase in cash 670 cash at beginning 1130 cash at year end 1800

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