Exercise 5-16 (Part Level Submission) A comparative balance sheet for Bonita Corporation is presented below. Assets Cash Accounts receivable Inventory Land Equipment Accumulated Depreciation Equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total December 31 2017 2016 $ 72,810 $ 22,000 83,460 67,650 181,460 190,650 72,460 111,650 261,460 201,650 (70,460 ) (43,650 ) $601,190 $549,950 $ 35,460 150,000 214,000 201,730 $601,190 $ 48,650 200,000 164,000 137,300 $549,950 Additional information: 1. Net income for 2017 was $127,920. No gains or losses were recorded in 2017. 2. Cash dividends of $63,490 were declared and paid. 3. Bonds payable amounting to $50,000 were retired through issuance of common stock. BONITA CORPORATION Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities 127,920 Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation expense 26,810 T Increase in Accounts Receivable -15,810 T Decrease in Accounts Payable -13,190 | Decrease in Inventory 9,190 7,000 T Net Cash Provided by Operating Activities 134,920 Cash Flows from Investing Activities Purchase of Equipment Purchase of equipment 59,810 Sale of Land 72,460 Net Cash Provided by Investing Activities TCash Flows from Financing Activities *B Payment of Cash Dividends Cash Flows from Financing Activities Net Increase in Cash Cash at Beginning of Year Cash at End of Year Issued common stock to retire $ of bonds outstanding