| Exercise 23-13 | | Your answer is partially correct.Try again. | | | Whispering Inc., a greeting card company, had the following statements prepared as of December 31, 2017. | WHISPERING INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 | | 12/31/17 | 12/31/16 | | Cash | $5,900 | $6,900 | | Accounts receivable | 61,400 | 51,200 | | Short-term debt investments (available-for-sale) | 34,700 | 18,000 | | Inventory | 40,200 | 59,700 | | Prepaid rent | 5,000 | 4,100 | | Equipment | 152,700 | 130,200 | | Accumulated depreciationequipment | (35,400 | ) | (25,000 | ) | | Copyrights | 45,700 | | 49,900 | | | Total assets | $310,200 | | $295,000 | | | | Accounts payable | $46,300 | $40,400 | | Income taxes payable | 3,900 | 6,000 | | Salaries and wages payable | 8,100 | 3,900 | | Short-term loans payable | 8,100 | 10,100 | | Long-term loans payable | 60,200 | 69,400 | | Common stock, $10 par | 100,000 | 100,000 | | Contributed capital, common stock | 30,000 | 30,000 | | Retained earnings | 53,600 | | 35,200 | | | Total liabilities & stockholders equity | $310,200 | | $295,000 | | | WHISPERING INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 | | Sales revenue | $335,075 | | Cost of goods sold | 175,200 | | Gross profit | 159,875 | | Operating expenses | 120,100 | | Operating income | 39,775 | | Interest expense | $11,400 | | Gain on sale of equipment | 2,000 | 9,400 | | Income before tax | 30,375 | | Income tax expense | 6,075 | | Net income | $24,300 | Additional information: | 1. | Dividends in the amount of $5,900were declared and paid during 2017. | | 2. | Depreciation expense and amortization expense are included in operating expenses. | | 3. | No unrealized gains or losses have occurred on the investments during the year. | | 4. | Equipment that had a cost of $20,100and was 70% depreciated was sold during 2017. | Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) | WHISPERING INC. Statement of Cash Flows December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017EAT_1414587029224_1_1183836017270283 | | Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in CashEAT_1366375509528_0_7086722828801866_006 | | Cash Received from CustomersCash Payments to SuppliersPurchase of InvestmentsCash Payments for Operating ExpensesCash Payments for InterestCash Payments for Income TaxesSale of EquipmentPrincipal Payment on Short-term LoanPurchase of EquipmentPrincipal Payment on Long-term LoanDividend PaymentsEAT_1366375509528_0_7086722828801866_016 | $ 324,875 | | Cash Payments for Operating ExpensesBorrowing on Short-Term LoanBorrowing on Long-Term LoanCash Payments for InterestSale of Available-for-Sale InvestmentsCash Payments for Income TaxesCash Received from CustomersSale of EquipmentPurchase of EquipmentPurchase of InvestmentsCash Payments to SuppliersPrincipal Payment on Short-term LoanPrincipal Payment on Long-term LoanDividend PaymentsEAT_1366375509528_0_7086722828801866_032 | $ | | Sale of Available-for-Sale InvestmentsBorrowing on Long-Term LoanPurchase of EquipmentPurchase of InvestmentsCash Payments for InterestCash Received from CustomersSale of EquipmentPrincipal Payment on Short-term LoanPrincipal Payment on Long-term LoanCash Payments to SuppliersCash Payments for Operating ExpensesDividend PaymentsBorrowing on Short-Term LoanCash Payments for Income TaxesEAT_1366375509528_0_7086722828801866_048 | 149,800 | | Purchase of EquipmentCash Payments for Income TaxesPurchase of InvestmentsPrincipal Payment on Long-term LoanCash Payments for InterestBorrowing on Long-Term LoanPrincipal Payment on Short-term LoanSale of EquipmentDividend PaymentsCash Payments for Operating ExpensesBorrowing on Short-Term LoanSale of Available-for-Sale InvestmentsCash Received from CustomersCash Payments to SuppliersEAT_1366375509528_0_7086722828801866_067 | 11,400 | | Purchase of EquipmentSale of EquipmentCash Payments for Operating ExpensesPrincipal Payment on Short-term LoanCash Payments for Income TaxesPurchase of InvestmentsCash Payments for InterestBorrowing on Long-Term LoanPrincipal Payment on Long-term LoanDividend PaymentsBorrowing on Short-Term LoanSale of Available-for-Sale InvestmentsCash Received from CustomersCash Payments to SuppliersEAT_1366375509528_0_7086722828801866_085 | 8,175 | | 290,555 | | Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in CashEAT_1366375509528_0_7086722828801866_107 | 54,720 | | Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in CashEAT_1366375509528_0_7086722828801866_119 | | Cash Payments to SuppliersPurchase of InvestmentsBorrowing on Long-Term LoanCash Payments for Income TaxesCash Payments for Operating ExpensesSale of EquipmentSale of Available-for-Sale InvestmentsCash Payments for InterestPurchase of EquipmentPrincipal Payment on Short-term LoanPrincipal Payment on Long-term LoanBorrowing on Short-Term LoanCash Received from CustomersDividend PaymentsEAT_1366375509528_0_7086722828801866_135 | 2,000 | | Purchase of InvestmentsPrincipal Payment on Long-term LoanPrincipal Payment on Short-term LoanDividend PaymentsCash Payments for Operating ExpensesCash Payments to SuppliersPurchase of EquipmentCash Payments for InterestCash Received from CustomersBorrowing on Short-Term LoanBorrowing on Long-Term LoanSale of Available-for-Sale InvestmentsCash Payments for Income TaxesSale of EquipmentEAT_1366375509528_0_7086722828801866_153 | 22,500 | | Purchase of InvestmentsPrincipal Payment on Long-term LoanCash Received from CustomersCash Payments to SuppliersCash Payments for Income TaxesCash Payments for InterestSale of EquipmentCash Payments for Operating ExpensesDividend PaymentsBorrowing on Long-Term LoanPurchase of EquipmentBorrowing on Short-Term LoanPrincipal Payment on Short-term LoanSale of Available-for-Sale InvestmentsEAT_1366375509528_0_7086722828801866_171 | 130,000 | | Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in CashEAT_1366375509528_0_7086722828801866_190 | | | Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in CashEAT_1366375509528_0_7086722828801866_199 | | Purchase of EquipmentPurchase of InvestmentsDividend PaymentsBorrowing on Long-Term LoanSale of Available-for-Sale InvestmentsCash Received from CustomersSale of EquipmentBorrowing on Short-Term LoanCash Payments for Income TaxesCash Payments to SuppliersPrincipal Payment on Short-term LoanCash Payments for Operating ExpensesCash Payments for InterestPrincipal Payment on Long-term LoanEAT_1366375509528_0_7086722828801866_219 | 2,000 | | Dividend PaymentsPurchase of InvestmentsPrincipal Payment on Long-term LoanBorrowing on Short-Term LoanPurchase of EquipmentBorrowing on Long-Term LoanSale of Available-for-Sale InvestmentsCash Received from CustomersSale of EquipmentCash Payments to SuppliersPrincipal Payment on Short-term LoanCash Payments for Operating ExpensesCash Payments for InterestCash Payments for Income TaxesEAT_1366375509528_0_7086722828801866_237 | 9,200 | | Cash Payments for Income TaxesPurchase of EquipmentPurchase of InvestmentsDividend PaymentsPrincipal Payment on Long-term LoanBorrowing on Short-Term LoanBorrowing on Long-Term LoanCash Received from CustomersCash Payments to SuppliersCash Payments for InterestSale of EquipmentSale of Available-for-Sale InvestmentsCash Payments for Operating ExpensesPrincipal Payment on Short-term LoanEAT_1366375509528_0_7086722828801866_255 | 5,900 | | Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in CashEAT_1366375509528_0_7086722828801866_270 | | | Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in CashEAT_1366375509528_0_7086722828801866_289 | | | Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in CashEAT_1366375509528_0_7086722828801866_294 | | | Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in CashEAT_1366375509528_0_7086722828801866_311 | $ | Warning | Don't show me this message again for the assignment |
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