Answered: Presented below is a condensed version… | bartleby

Presented below is a condensed version of the comparative balance sheets for Pronghorn Corporation for the last two years at December 31. 2017 2016 Cash $ 176,700 $ 45,000 Accounts receivable 118,900 78,400 Investments 69,900 98,300 Equipment 349,900 176,100 Accumulated depreciation—equipment ( 95,300) ( 65,300) Current liabilities 135,500 94,300 Common stock 138,100 63,700 Retained earnings 345,300 173,300 Additional information: Investments were sold at a gain of $ 9,300; no investments were purchased; no equipment was sold; cash dividends paid were $ 42,500; and net income was $ 214,500

Financial Accounting: The Impact on Decision Makers

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.2P

See similar textbooks

Related questions

Question

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

		2017		2016
Cash		$ 176,700		$ 45,000
Accounts receivable		118,900		78,400
Investments		69,900		98,300
Equipment		349,900		176,100
Accumulated depreciation—equipment		( 95,300)		( 65,300)
Current liabilities		135,500		94,300
Common stock		138,100		63,700
Retained earnings		345,300		173,300

Additional information:

Investments were sold at a gain of $ 9,300; no investments were purchased; no equipment was sold; cash dividends paid were $ 42,500; and net income was $ 214,500.

Pronghorn CORPORATION
Statement of Cash Flows
For the Year Ended December 31, 2017
Cash Flows from Operating Activities
Net Income
214,500
Adjustments to reconcile net income to
Net Cash Provided by Operating Activities
Depreciation Expense
30,000
Gain on Sale of Investments
Increase in Accounts Receivable
Increase in Current Liabilities
41,200
21,400
Net Cash Provided by Operating Activities v
235,900
%24
%24

Cash Flows from Investing Activities
Sale of Investments
|
Purchase of Equipment
Net Cash Used by Investing Activities
Cash Flows from Financing Activities
Issuance of Common Stock
Payment of Cash Dividends
Net Cash Provided by Financing Activities
Net Increase in Cash
131,700
>

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Blurred answer

Similar questions

Statement of Cash Flows The following are Mueller Companys cash flow activities: a. Net income, 68,000 b. Increase in accounts receivable, 4,400 c. Receipt from sale of common stock, 12,300 d. Depreciation expense, 11,300 e. Dividends paid, 24,500 f. Payment for purchase of building, 65,000 g. Bond discount amortization, 2,700 h. Receipt from sale of long-term investments at cost, 10,600 i. Payment for purchase of equipment, 8,000 j. Receipt from sale of preferred stock, 20,000 k. Increase in income taxes payable, 3,500 l. Payment for purchase of land, 9,700 m. Decrease in accounts payable, 2,900 n. Increase in inventories, 10,300 o. Beginning cash balance, 18,000 Required: Prepare Mueller Company's statement of cash flows.
Statement of cash flowsdirect method applied to PR 14-1B The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 2016 and 2015, is: Dec. 31,2016 Dec. 31.201S Assets Cash 70,720 47,940 Accounts receivable (net) 207,230 188,190 Inventories 298,520 289,850 Investments. 0 102,000 Land 295,800 0 Equipment 438,600 358,020 Accumulated depreciationequipment (99,110) (84,320) Total assets 1,21,760 901,680 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) 205,700 194,140 Accrued expenses payable (operating expenses! 30,600 26,860 Dividends payable 25,500 20,400 Common stock. Si par. 202,000 102,000 Paid in capital: Excess of issue price over parcommon stock 354,000 204,000 Retained earnings 393,960 354,280 Total liabilities and stockholders equity 1,211,760 901,680 The income statement for the year ended December 31, 2016, is as follows: Sales- 2,023,898 Cost of merchandise sold 1,245,476 Gross profit 778,422 Operating expenses: Depreciation expense 14,790 Other operating expenses 517,299 Total operating expenses 532,089 Operating income 246,333 Other expenses: Loss on sale of investments (10,200) Income before income tax 236,133 Income tax expense- 94,453 Net income- 141,680 Additional data obtained from an examination of the accounts in the ledger for 2016 are as follows: a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. The investments were sold for 91,800 cash. d. The common stock was issued for cash. e. There was a 102,000 debit to Retained Laming for cash dividends declared. Instructions Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.
Net Cash Flow from Operating Activities The following are accounting items taken from Tyrone Shoelaces Required: a. Net income, 22,900 b. Payment for purchase of land, 4,000 c. Payment for retirement of bonds, 6,000 d. Depreciation expense, 7,800 e. Receipt from issuance of common stock, 7,000 f. Patent amortization expense, 2,700 g. Increase in accounts receivable, 3,400 h. Payment of dividends, 5,000 i. Decrease in accounts payable, 2,600 Required: Prepare the operating activities section of Tyrones statement of cash flows using the indirect method.

Recommended textbooks for you

Financial Accounting: The Impact on Decision Make…

Financial Accounting: The Impact on Decision Make…

Accounting

ISBN:

9781305654174

Author:

Gary A. Porter, Curtis L. Norton

Publisher:

Cengage Learning

Survey of Accounting (Accounting I)

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Financial Accounting: The Impact on Decision Make…

Financial Accounting: The Impact on Decision Make…

Accounting

ISBN:

9781305654174

Author:

Gary A. Porter, Curtis L. Norton

Publisher:

Cengage Learning

Survey of Accounting (Accounting I)

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Financial Accounting Intro Concepts Meth/Uses

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Managerial Accounting

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Cornerstones of Financial Accounting

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS