Exercise 5-15

Presented below is a condensed version of the comparative balance sheets for Sandhill Corporation for the last two years at December 31.

		2017			2016
Cash		$ 247,800			$ 109,200
Accounts receivable		252,000			259,000
Investments		72,800			103,600
Equipment		417,200			336,000
Accumulated Depreciation-Equipment		(148,400	)		(124,600	)
Current liabilities		187,600			211,400
Common stock		224,000			224,000
Retained earnings		429,800			247,800

Additional information: Investments were sold at a loss of $14,000; no equipment was sold; cash dividends paid were $42,000; and net income was $224,000.

parenthesis e.g. (15,000). SANDHILL CORPORATION Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities Net Income 224000 Adjustments to reconcile net income to Decrease in Accounts Receivable 7000 Loss on Sale of Investments 16800 Depreciation Expense 23800 Decrease in Current Liabilities (23800) 23800 Net Cash Provided by Operating Activities 23800