edugen.wileyplus.com During 2017, Novak Cor WileyPLUS Return to Blackboard PLUS

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edugen.wileyplus.com During 2017, Novak Cor WileyPLUS Return to Blackboard PLUS Kimmel, Accounting, 6e ER End Time: 07:24 PM / Remaining: 115 min RUSSELL COMPANY Comparative Balance Sheet SOURCES Dec. 31, 2017 Dec. 31, 2016 Assets Cash Accounts receivable Inventory Prepaid insurance Stock investments Equipment $38,000 18,000 25,000 7,000 $13,000 14,000 15,000 9,000 18,000 30,000 60,000 (18,000) (14,000) equipment Total assets $130,000 $85,000 Liabilities and Stockholder's Equity Accounts payable Bonds payable Common stock Retained earnings $25,000 37,000 40,000 28,000 $130,000 $7,000 45,000 23,000 10,000 $85,000 Total liabilities and stockholder's equity Additional information: 1. Net income for the year ending December 31, 2017, was $30,000. 2. Cash dividends of $12,000 were declared and paid during the year. 3. 4. Sales for 2017 are $130,000. Stock investments on balance sheet that had a book value of $18,000 were sold for $13,000. Prepare a statement of cash flows for the year ended December 31, 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

Working capital (abbreviated WC) is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Gross working capital equals to current assets.

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