Problem 17-8 KALE COMPANY ANSWER:A

Checking account #101 1,750,000

Checking account #201 (100,000)
Time Deposit 250,000
Commercial papers 1,000,000
90 days treasury bill 500,000
Total cash and cash equivalents 3,400,000

17-10 SEAWALL COMPANY ANSWER:A

Cash-January 1 1,200,000
Cash flow from operating activities (squeeze) 4,200,000
Cash flow from investing activities (2,500,000)
Cash flow from financing activities (800,000)
Cash-December 31 2,100,000

17-12 MOON COMPANY

ANSWER: C
Depreciation 1,900,000
Accounts Receivable (1,100,000)
Inventory (730,000)
Accounts Payable 1,220,000
TOTAL 1,290,000
Increase in investment carried at equity,
representing share in net income of investee (55,000)
Amortization on of premium on bonds payable (14,000)
Increase in deferred tax liabilty 18,000
Cash provided by operating activities 1,449,000

17-16 BLACKTOWN COMPANY ANSWER: A

Net Income(squeeze) 3,300,000
Decrease in accounts payable (150,000)
Increase in inventory (50,000)
Decrease in accounts receivable 100,000
Decrease in prepaid expenses 200,000
Depreciation 900,000
Gain on sale of equipment (300,000)
Cash flow from oeprations 4,000,000

17-18 STONE COMPANY ANSWER:A

Net income 2,120,000
Depreciation 240,000
Amortization 80,000
Gain on sale of land (200,000)
Decrease in accounts receivable 60,000
Increase in inventory (120,000)
Decrease in accounts payable (140,000)
Increase in accrued expenses 160,000
Net cash provided by operating activities 2,200,000

17-20 MAHOGANY COMPANY

ANSWER: B
Net Income 3,400,000
Depreciation Expense 1,000,000
Loss on Sale of Equipment 100,000
Decrease Accounts Payable (200,000)
Decrease Inventory 150,000
Decrease Accounts Receivable (50,000)
Net cash provided by operating activities 4,400,000

17-22 MATTHEW COMPANY ANSWER B

Purchase of land (3,500,000)
Vendor financing 1,000,000
Cash payment (2,500,000)
Purchase of plant for cash (2,500,000)
Cash proceeds from sale of plant 400,000
Net cash outflows-investing (4,600,000)
17-24 RIVERSIDE COMPANY ANSWER 1.D 2.C
a. Cash paid for purchase of building 400,000
Cash paid for purchase of land 350,000
Net cash-investing 750,000

Long term loan 550,000

Payment of cash dividend (300,000)
Net cash provided-financing 250,000

17-26 FAYE COMPANY ANSWERS: 1.C 2. B

Sale of treasury 750,000
Payment of dividend (4,000,000)
Net cash used in financing activities 3,750,000

Purchase of Ace bonds (1,800,000)

Sale of equipment 100,000
Net cash used in investing activities 1,700,000

17-28 TEB COMPANY ANSWER: D

Payment for the long-term bonds payable 7,500,000
Payment of cash dividend (600,000)
Sale of treasury shares 950,000
Net cash used in financing activities 7,850,000

17-30 MOUNTAIN COMPANY ANSWERS: 1.A

2.B 3.C
Net income 6,500,000
Decrease in accounts receivable 500,000
Increase in inventory (1,500,000)
Decrease in prepaid expenses 200,000
Gain on sale of equipment (300,000)
Depreciation 4,500,000
Decrease in accounts payable (3,500,000)
Increase in accrued expenses 1,000,000
Net cash provided by operating activities 7,400,000

Payment for new equipment (15,000,000)

Proceeds fro sale of equipment 1,800,000
Net cash used in investing activities (13,200,000)

PPE 42,000,000
Payment for new equipment(squeeze) 15,000,000
Total 57,000,000
Cost of equipment sold (2,000,000)
PPE 55,000,000

Proceeds from borrowing on a long term note payable 10,000,000

Dividend paid (3,000,000)
Payment of current bank note payable(5m-2m) (3,000,000)
Net cash provided by financing activities 4,000,000