Exercise 23-11
Condensed financial data of Windsor Company for 2017 and 2016 are presented below.
WINDSOR COMPANY
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2017 AND 2016
2017
2016
Cash
$1,770
$1,170
Receivables
1,790
1,320
Inventory
1,610
1,940
Plant assets
1,910
1,680
Accumulated depreciation
(1,200
)
(1,190
)
Long-term investments (held-to-maturity)
1,300
1,420
$7,180
$6,340
Accounts payable
$1,210
$910
Accrued liabilities
200
240
Bonds payable
1,370
1,560
Common stock
1,880
1,740
Retained earnings
2,520
1,890
$7,180
$6,340
WINDSOR COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2017
Sales revenue
$7,010
Cost of goods sold
4,730
Gross margin
2,280
Selling and administrative expenses
930
Income from operations
1,350
Other revenues and gains
Gain on sale of investments
80
Income before tax
1,430
Income tax expense
540
Net income 890
Cash dividends
260
Income retained in business
$630
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 indirect method.
