Question

The following are Marin Corp.’s comparative balance sheet accounts at December 31, 2017 and 2016, with a column showing the increase (decrease) from 2016 to 2017.

COMPARATIVE BALANCE SHEETS
		2017			2016			Increase (Decrease)
Cash		$813,400			$705,900			$107,500
Accounts receivable		1,123,400			1,156,600			(33,200	)
Inventory		1,863,500			1,731,800			131,700
Property, plant, and equipment		3,302,300			2,988,100			314,200
Accumulated depreciation		(1,162,900	)		(1,033,700	)		(129,200	)
Investment in Myers Co.		307,100			276,600			30,500
Loan receivable		252,200			—			252,200
Total assets		$6,499,000			$5,825,300			$673,700
Accounts payable		$1,015,600			$946,000			$69,600
Income taxes payable		30,100			49,800			(19,700	)
Dividends payable		79,200			100,900			(21,700	)
Lease liabililty		373,600			—			373,600
Common stock, $1 par		500,000			500,000			—
Paid-in capital in excess of par—common stock		1,513,500			1,513,500			—
Retained earnings		2,987,000			2,715,100			271,900
Total liabilities and stockholders’ equity		$6,499,000			$5,825,300			$673,700

Additional information:

1.		On December 31, 2016, Marin acquired 25% of Myers Co.’s common stock for $276,600. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,106,400. Myers reported income of $122,000 for the year ended December 31, 2017. No dividend was paid on Myers’s common stock during the year.
2.		During 2017, Marin loaned $273,800 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $21,600, plus interest at 10%, on December 31, 2017.
3.		On January 2, 2017, Marin sold equipment costing $59,400, with a carrying amount of $37,900, for $40,400 cash.
4.		On December 31, 2017, Marin entered into a capital lease for an office building. The present value of the annual rental payments is $373,600, which equals the fair value of the building. Marin made the first rental payment of $59,400 when due on January 2, 2018.
5.		Net income for 2017 was $351,100.
6.		Marin declared and paid the following cash dividends for 2017 and 2016.

		2017		2016
Declared		December 15, 2017		December 15, 2016
Paid		February 28, 2018		February 28, 2017
Amount		$79,200		$100,900

Prepare a statement of cash flows for Marin Corp. for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answer 1