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Exercise 23-12 Condensed financial data of Bonita Company for 2017 and 2016 are presented below. BONITA COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 2016 Cash $1,830 $1,160 Receivables 1,750 1,270 Inventory 1,580 1,860 Plant assets 1,900 1,690 Accumulated depreciation (1,190 ) (1,150 ) Long-term investments (held-to-maturity) 1,280 1,400 $7,150 $6,230 Accounts payable $1,220 $920 Accrued liabilities 210 250 Bonds payable 1,410 1,520 Common stock 1,910 1,730 Retained earnings 2,400 1,810 $7,150 $6,230 BONITA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,930 Cost of goods sold 4,670 Gross margin 2,260 Selling and administrative expenses 940 Income from operations 1,320 Other revenues and gains Gain on sale of investments 80 Income before tax 1,400 Income tax expense 550 Net income 850 Cash dividends 260 Income retained in business $590 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017. Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) BONITA COMPANY Statement of Cash Flows (Direct Method) Cash Flows from operating activities cash receipts from customers cash paid for merchandise cash paid for selling/admin expenses cash paid for income taxes net cash provided by operating activities cash flows from investing activities sale of plant assets sale of investments net cash provided by investing activities cash flows from financing acitivities payment of cash dividends redemption of bonds payable issuance of capital stock net cash used by financing activities net increase in cash cash at beginning of period cash at end of period noncash investing and financing activities insurance of common stock for plant assets

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