Reference no: EM132325760
Question
Sweet Co. reported $149,900 of net income for 2017. The accountant, in preparing the statement of cash flows, noted the following items occurring during 2017 that might affect cash flows from operating activities.
1.Sweet purchased 100 shares of treasury stock at a cost of $20 per share. These shares were then resold at $25 per share.
2.Sweet sold 100 shares of IBM common at $190 per share. The acquisition cost of these shares was $130 per share. There were no unrealized gains or losses recorded on this investment in 2017.
3.Sweet revised its estimate for bad debts. Before 2017, Sweet's bad debt expense was 1% of its net sales. In 2017, this percentage was increased to 2%. Net sales for 2017 were $468,000, and net accounts receivable decreased by $10,800 during 2017.
4.Sweet issued 500 shares of its $10 par common stock for a patent. The market price of the shares on the date of the transaction was $23 per share.
5.Depreciation expense is $36,500.
6.Sweet Co. holds 40% of the Nirvana Company's common stock as a long-term investment. Nirvana Company reported $25,400 of net income for 2017.
7.Nirvana Company paid a total of $2,200 of cash dividends to all investees in 2017.
8.Sweet declared a 10% stock dividend. One thousand shares of $10 par common stock were distributed. The market price at date of issuance was $20 per share.
Prepare schedule that shows the net cash flow from operating activities using the indirect method. Assume no items other than those listed above affected the computation of 2017 net cash flow from operating activities. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Sweet Co.
Statement of Cash Flows (Partial)
December 31, 2017
For the Year Ended December 31, 2017
For the Quarter Ended December 31, 2017
Cash at Beginning of Period
Cash at End of Period
Cash Flows from Financing Activities
Cash Flows from Investing Activities
Cash Flows from Operating Activities
Net Cash Provided by Financing Activities
Net Cash Provided by Investing Activities
Net Cash Provided by Operating Activities
Net Cash Used by Financing Activities
Net Cash Used by Investing Activities
Net Cash Used by Operating Activities
Net Decrease in Cash
Net Increase in Cash
Increase in Accounts Receivable
Decrease in Accounts Receivable
Income from Equity Method Investment
Dividends from Equity Method Investment
Loss on Sale of Investment
Depreciation expense
Net Income
Gain on Sale of Investment
$
Adjustments to reconcile net income to
Cash at Beginning of Period
Cash at End of Period
Cash Flows from Financing Activities
Cash Flows from Investing Activities
Cash Flows from Operating Activities
Net Cash Provided by Financing Activities
Net Cash Provided by Investing Activities
Net Cash Provided by Operating Activities
Net Cash Used by Financing Activities
Net Cash Used by Investing Activities
Net Cash Used by Operating Activities
Net Decrease in Cash
Net Increase in Cash
Decrease in Accounts Receivable
Gain on Sale of Investment
Income from Equity Method Investment
Dividends from Equity Method Investment
Depreciation expense
Net Income
Increase in Accounts Receivable
Loss on Sale of Investment
$
Loss on Sale of Investment
Increase in Accounts Receivable
Dividends from Equity Method Investment
Gain on Sale of Investment
Income from Equity Method Investment
Net Income
Depreciation expense
Decrease in Accounts Receivable
Gain on Sale of Investment
Decrease in Accounts Receivable
Loss on Sale of Investment
Net Income
Depreciation expense
Increase in Accounts Receivable
Income from Equity Method Investment
Dividends from Equity Method Investment
Decrease in Accounts Receivable
Net Income
Income from Equity Method Investment
Dividends from Equity Method Investment
Gain on Sale of Investment
Increase in Accounts Receivable
Depreciation expense
Loss on Sale of Investment
Increase in Accounts Receivable
Dividends from Equity Method Investment
Decrease in Accounts Receivable
Net Income
Gain on Sale of Investment
Depreciation expense
Income from Equity Method Investment
Loss on Sale of Investment
Cash at Beginning of Period
Cash at End of Period
Cash Flows from Financing Activities
Cash Flows from Investing Activities
Cash Flows from Operating Activities
Net Cash Provided by Financing Activities
Net Cash Provided by Investing Activities
Net Cash Provided by Operating Activities
Net Cash Used by Financing Activities
Net Cash Used by Investing Activities
Net Cash Used by Operating Activities
Net Decrease in Cash
Net Increase in Cash
$