Exercise 5-17 Oriole Corporation\'s balance sheet at the end of 2016 included th

Question

Exercise 5-17 Oriole Corporation's balance sheet at the end of 2016 included the following items Current assets (Cash $82,000) $236,480 Land Buildings Equipment Accum. depr.-buildings Accum. depr.-equipment Patents Current liabilities $151,480 101,480 181,100 91,100 Retained earnings 45,100 $479,160 31,100 Bonds payable 121,480 Common stock (31,480) Total (11,000 ) 41,480 Total $479,160 The following information is available for 2017 1. Net income was $55,350 2. Equipment (cost $21,480 and accumulated depreciation $9,480) was sold for $11,480 3. Depreciation expense was $5,480 on the building and $10,480 on equipment. 4. Patent amortization was $2,500 5. Current assets other than cash increased by $29,000. Current liabilities increased by $14,480 6. An addition to the building was completed at a cost of $28,480 7. A long-term investment (Equity) in stock was purchased for $16,000 8. Bonds payable of $51,100 were issued 9. Cash dividends of $30,000 were declared and paid 10. Treasury stock was purchased at a cost of $11,000

Explanation / Answer

Oriole Corporation Cash Flow Statement For year ended 31 December 2017 Cash flows from operating activities Net Income $   55,350 Adjustment to reconcile net income to: Depreciation expense $   15,960 Amortization expense $      2,500 Loss on sale of equipment $         520 Changes in current operating assets and liabilities Increase in current assets $ (29,000) Increase in current liabilities $   14,480 $      4,460 Net cash provided by operating activities $   59,810 Cash flows from investing activities Proceed from sale of equipment $   11,480 Addition in building $ (28,480) Purchase of long term ivestment $ (16,000) Net cash used by investing activities $ (33,000) Cash flows from financing activities Cash received from bonds issued $   51,100 Dividend paid $ (30,000) Treasury stock purchased $ (11,000) Net cash provided by financing activities $   10,100 Net increase in cash and cash equivalents $   36,910 Cash and cash equivalents at beginning of period $   82,000 Cash and cash equivalents at end of period $ 118,910

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