Reference no: EM131609815
Question - Organique Trink Corporation's Comparative balance sheets and income statement for the current year below:
Comparative Balance Sheet
Ending Beginning
Balance Balance
Assets:
Cash and cash equivalents ...........................................................$28 $22
Accounts rec.....................................................................................65 61
Inventory.........................................................................................45 47
Plant and equipment........................................................................658 520
Accumulated Depreciation................................................................(296) (288)
Total Assets.......................................................................................500 362
Liabilities and stockholders' equity:
Accounts payable................................................................................$28 $29
Wages payable....................................................................................22 20
Taxes payable......................................................................................28 24
Bonds payable......................................................................................151 200
Deferred taxes......................................................................................16 17
Common stock......................................................................................55 50
Retained earnings................................................................................200 22
Total liabilities and stockholders' equity.................................................500 362
Income statement
For the Year ended 12/31/2017
sales............................................................. $ 1,485
Cost of goods sold.............................................989
Gross margin......................................................496
Selling and administrative expense....................172
Net operating income.........................................324
Gain on sale of plant and equipment..................19
Income before taxes........................................... 343
Income taxes.......................................................103
Net income.........................................................$240
Cash dividends were $62 the company sold equipment for $19 that was originally purchased for $5 and that had accumulated depreciation of $5.
Required: Prepare the formal Statement of Cash Flows for the year ended 2017.