Question

Presented below are financial data from ECI’s 2016 annual report. Your job is to take this information and put together a cash flow statement.

Balance Sheet Data	12/31/2016	12/31/2015
Cash	102,500	45,000
Net Accts Receivable	28,000	35,000
Inventories	270,000	200,000
Land	43,000	35,000
Plant Assets, Gross	274,000	260,000
Accumulated Depreciation	82,000	75,000
Accounts Payable	50,000	64,000
Wages Payable	6,000	1,000
ST Notes Payable	3,000	10,000
Dividends Payable	3,000	2,000
LT Bonds Payable	107,000	90,000
Common Stock	200,000	170,000
APIC-CS	207,000	118,000
Retained Earnings	59,500	45,000

Income Statement Net Sales		120,000
Cost of Goods Sold		65,000
Gross Profit		55,000
Operating Expenses:
Depreciation Expense	-10,000
Other Expenses	-24,000	-34,000
Income From Operations		21,000
Other Gains and Losses:
Gain on Sale of PA	8000
Loss on Sale of Land	-3,000	5,000
Income Before Taxes		26,000
Income Tax Expense		6,500
Net Income		19,500

Other important information:

ECI purchased $18,000 of land; paying $14,000 in cash, issuing $1,000 common stock, and $3,000 APIC-CS.

ECI purchased $40,000 of plant assets; they paid cash for 70% and financed the other 30% with long term bonds payable.

ECI paid off $8,000 in long term bonds payable.

All other exchanges were cash transactions.

Answer 1