Question

Larkspur Inc. had the following balance sheet at December 31, 2016.

LARKSPUR INC. BALANCE SHEET DECEMBER 31, 2016
Cash		$ 20,990		Accounts payable		$ 30,990
Accounts receivable		22,190		Notes payable (long-term)		41,990
Investments		32,990		Common stock		100,990
Plant assets (net)		81,000		Retained earnings		24,190
Land		40,990				$ 198,160
		$ 198,160

During 2017, the following occurred.

1.		Larkspur Inc. sold part of its investment portfolio for $ 15,071. This transaction resulted in a gain of $ 3,471 for the firm. The company classifies its investments as available-for-sale.
2.		A tract of land was purchased for $ 13,990 cash.
3.		Long-term notes payable in the amount of $ 16,071 were retired before maturity by paying $ 16,071 cash.
4.		An additional $ 20,071 in common stock was issued at par.
5.		Dividends of $ 8,271 were declared and paid to stockholders.
6.		Net income for 2017 was $ 32,990 after allowing for depreciation of $ 11,071.
7.		Land was purchased through the issuance of $ 35,990 in bonds.
8.		At December 31, 2017, Cash was $ 37,990, Accounts Receivable was $ 42,590, and Accounts Payable remained at $ 30,990.

Prepare a statement of cash flows for 2017. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

LARKSPUR INC. Statement of Cash Flows   December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017
Cash at Beginning of YearCash at End of YearCash 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 CashNoncash Investing and Financing Activities
Purchase of LandDepreciation ExpenseIncrease in Account ReceivableGain on Sale of InvestmentsRetirement of Notes PayableSale of InvestmentsIssuance of Common StockDecrease in Account ReceivablePayment of Cash DividendsNet Income		$
Adjustments to reconcile net income to
Cash at Beginning of YearCash at End of YearCash 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 CashNoncash Investing and Financing Activities
Gain on Sale of InvestmentsSale of InvestmentsIssuance of Common StockRetirement of Notes PayableDepreciation ExpensePayment of Cash DividendsIncrease in Account ReceivableNet IncomePurchase of LandDecrease in Account Receivable
Purchase of LandIssuance of Common StockIncrease in Account ReceivableSale of InvestmentsRetirement of Notes PayableDecrease in Account ReceivablePayment of Cash DividendsNet IncomeGain on Sale of InvestmentsDepreciation Expense
Depreciation ExpenseIncrease in Account ReceivableNet IncomePurchase of LandDecrease in Account ReceivablePayment of Cash DividendsRetirement of Notes PayableGain on Sale of InvestmentsIssuance of Common StockSale of Investments
Cash at Beginning of YearCash at End of YearCash 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 CashNoncash Investing and Financing Activities
Cash at Beginning of YearCash at End of YearCash 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 CashNoncash Investing and Financing Activities
Payment of Cash DividendsSale of InvestmentsDepreciation ExpenseIssuance of Common StockRetirement of Notes PayableDecrease in Account ReceivablePurchase of LandNet IncomeIncrease in Account ReceivableGain on Sale of Investments
Payment of Cash DividendsIssuance of Common StockDepreciation ExpenseDecrease in Account ReceivablePurchase of LandIncrease in Account ReceivableNet IncomeSale of InvestmentsRetirement of Notes PayableGain on Sale of Investments
Cash at Beginning of YearCash at End of YearCash 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 CashNoncash Investing and Financing Activities
Cash at Beginning of YearCash at End of YearCash 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 CashNoncash Investing and Financing Activities
Increase in Account ReceivableRetirement of Notes PayableDecrease in Account ReceivablePayment of Cash DividendsDepreciation ExpenseIssuance of Common StockSale of InvestmentsGain on Sale of InvestmentsPurchase of LandNet Income
Increase in Account ReceivableIssuance of Common StockNet IncomeSale of InvestmentsDecrease in Account ReceivablePayment of Cash DividendsGain on Sale of InvestmentsRetirement of Notes PayablePurchase of LandDepreciation Expense
Increase in Account ReceivablePayment of Cash DividendsDepreciation ExpenseIssuance of Common StockPurchase of LandGain on Sale of InvestmentsSale of InvestmentsDecrease in Account ReceivableNet IncomeRetirement of Notes Payable
Cash at Beginning of YearCash at End of YearCash 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 CashNoncash Investing and Financing Activities
Cash at Beginning of YearCash at End of YearCash 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 CashNoncash Investing and Financing Activities
Cash at Beginning of YearCash at End of YearCash 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 CashNoncash Investing and Financing Activities
Cash at Beginning of YearCash at End of YearCash 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 CashNoncash Investing and Financing Activities		$
Cash at Beginning of YearCash at End of YearCash 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 CashNoncash Investing and Financing Activities
Land purchased through issuance of $   of bonds

Answer 1

Larkspur Company
Statement of cash flow
cash from operating activities
net income for the year					32,990
adjustment to reconcile net income to
the cash from operating activities
Depreciation expense					11,071
Gain on sale of investments					-3471
increase in receivable					-20400
net cash provided by operating activities						20,190
cash from investing activities
cash from sale of investments(1400-1280)+80					15,071
cash paid for purchase of plant (1900-1690)-70					-13990
Cash provided by investing activities						1,081
cash from financing activities
Redemption of bonds					-16,071
cash from purchase of common stock					20,071
cash dividend					-8,271
Cash used by financing activity						-4271
Net increase in cash						17000
Cash at the beginning of the year						20,990
cash at year end						37990