Condensed financial data of Flint Company for 2017 and 2016 are presented below. FLINT COMPANY COMPARATIVE BALANCE
Question:
Condensed financial data of Flint Company for 2017 and 2016 are presented below.
FLINT COMPANY | ||||||
2017 | 2016 | |||||
Cash | $1,790 | $1,170 | ||||
Receivables | 1,780 | 1,310 | ||||
Inventory | 1,580 | 1,900 | ||||
Plant assets | 1,900 | 1,720 | ||||
Accumulated depreciation | (1,180 | ) | (1,140 | ) | ||
Long-term investments (held-to-maturity) | 1,310 | 1,420 | ||||
$7,180 | $6,380 | |||||
Accounts payable | $1,220 | $880 | ||||
Accrued liabilities | 210 | 240 | ||||
Bonds payable | 1,380 | 1,550 | ||||
Common stock | 1,930 | 1,660 | ||||
Retained earnings | 2,440 | 2,050 | ||||
$7,180 | $6,380 |
FLINT COMPANY | ||
Sales revenue | $6,690 | |
Cost of goods sold | 4,650 | |
Gross margin | 2,040 | |
Selling and administrative expenses | 930 | |
Income from operations | 1,110 | |
Other revenues and gains | ||
Gain on sale of investments | 90 | |
Income before tax | 1,200 | |
Income tax expense | 550 | |
Net income | 650 | |
Cash dividends | 260 | |
Income retained in business | $390 |
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.
Accounting Principles
ISBN: 978-1119048473
7th Canadian Edition Volume 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak