See attachment for the full assignment.

Exercise 23-14

Grouper Inc., a greeting card company, had the following statements prepared as of December 31, 2017.

GROUPER INC.

COMPARATIVE BALANCE SHEET

AS OF DECEMBER 31, 2017 AND 2016

12/31/17

12/31/16

Cash$6,000

$7,100

Accounts receivable62,000

50,700

Short-term debt investments (available-for-sale)35,300

17,900

Inventory40,400

59,600

Prepaid rent5,100

3,900

Equipment153,300

131,200

Accumulated depreciation?equipment(35,300

)(25,100

)Copyrights46,000

50,000

Total assets$312,800

$295,300

Accounts payable$46,200

$39,700

Income taxes payable3,900

6,100

Salaries and wages payable7,900

4,000

Short-term loans payable8,000

10,100

Long-term loans payable59,900

68,300

Common stock, $10 par100,000

100,000

Contributed capital, common stock30,000

30,000

Retained earnings56,900

37,100

Total liabilities & stockholders' equity$312,800

$295,300

GROUPER INC.

INCOME STATEMENT

FOR THE YEAR ENDING DECEMBER 31, 2017

Sales revenue$334,625

Cost of goods sold174,300

Gross profit160,325

Operating expenses118,900

Operating income41,425

Interest expense$11,300

Gain on sale of equipment2,000

9,300

Income before tax32,125

Income tax expense6,425

Net income$25,700

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 $19,800and was 70% depreciated was sold during 2017.

Exercise 23-14 Grouper Inc., a greeting card company, had the following statements prepared as of December 31, 2017. GROUPER INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,000 $7,100 Accounts receivable 62,000 50,700 Short-term debt investments (available-forsale) 35,300 17,900 Inventory 40,400 59,600 5,100 3,900 Equipment 153,300 131,200 Accumulated depreciationequipment (35,300 ) (25,100 ) 46,000 50,000 $312,800 $295,300 $46,200 $39,700 Income taxes payable 3,900 6,100 Salaries and wages payable 7,900 4,000 Short-term loans payable 8,000 10,100 Long-term loans payable 59,900 68,300 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 56,900 37,100 $312,800 $295,300 Prepaid rent Copyrights Total assets Accounts payable Common stock, $10 par Total liabilities & stockholders' equity GROUPER INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Sales revenue $334,625 Cost of goods sold 174,300 Gross profit 160,325 Operating expenses 118,900 Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income 41,425 $11,300 2,000 9,300 32,125 6,425 $25,700 Additional information: 1. Dividends in the amount of $5,900 were 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 $19,800 and was 70% depreciated was sold during 2017. Prepare a statement of cash flows 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).) GROUPER INC. Statement of Cash Flows $ Adjustments to reconcile net income to $ $