Following are selected balance sheet accounts of Del Conte Corp. at December 31, 2018 and 2017, and the increases or decreases in each account from 2017 to 2018. Also presented is selected income statement information for the year ended December 31, 2018, and additional information. Selected Balance Sheet Accounts 2018 2017 Increase (Decrease) Assets Accounts receivable $ 54,000 $ 34,000 $ 20,000 Property, plant, and equipment 297,000 257,000 40,000 Accumulated depreciation (198,000 ) (177,000 ) 21,000 Liabilities and Stockholders’ Equity Bonds payable 79,000 66,000 13,000 Dividends payable 13,000 9,000 4,000 Common stock, $1 par 42,000 29,000 13,000 Additional paid-in capital 14,000 7,000 7,000 Retained earnings 124,000 101,000 23,000 Selected Income Statement Information for the Year Ended December 31, 2018 Sales revenue $ 175,000 Depreciation 53,000 Gain on sale of equipment 18,000 Net income 48,000 Additional information: Accounts receivable relate to sales of merchandise. During 2018, equipment costing $60,000 was sold for cash. During 2018, bonds payable with a face value of $40,000 were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium. Required: Items 1 through 5 represent activities that will be reported in Del Conte's statement of cash flows for the year ended December 31, 2018. The following two responses are required for each item: Determine the amount that should be reported in Del Conte's 2018 statement of cash flows. Select the category (i.e., O - Operating activity, I - Investing activity and F - Financing activity) in which the amount should be reported in the statement of cash flows.

Following are selected balance sheet accounts of Del Conte Corp. at December 31, 2018 and 2017, and the increases or decreases in each account from 2017 to 2018. Also presented is selected income statement information for the year ended December 31, 2018, and additional information. Selected Balance Sheet Accounts 2018 2017 Increase (Decrease) Assets Accounts receivable $ 54,000 $ 34,000 $ 20,000 Property, plant, and equipment 297,000 257,000 40,000 Accumulated depreciation (198,000 ) (177,000 ) 21,000 Liabilities and Stockholders’ Equity Bonds payable 79,000 66,000 13,000 Dividends payable 13,000 9,000 4,000 Common stock, $1 par 42,000 29,000 13,000 Additional paid-in capital 14,000 7,000 7,000 Retained earnings 124,000 101,000 23,000 Selected Income Statement Information for the Year Ended December 31, 2018 Sales revenue $ 175,000 Depreciation 53,000 Gain on sale of equipment 18,000 Net income 48,000 Additional information: Accounts receivable relate to sales of merchandise. During 2018, equipment costing $60,000 was sold for cash. During 2018, bonds payable with a face value of $40,000 were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium. Required: Items 1 through 5 represent activities that will be reported in Del Conte's statement of cash flows for the year ended December 31, 2018. The following two responses are required for each item: Determine the amount that should be reported in Del Conte's 2018 statement of cash flows. Select the category (i.e., O - Operating activity, I - Investing activity and F - Financing activity) in which the amount should be reported in the statement of cash flows.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Selected Balance Sheet Accounts	2018	2017	Increase (Decrease)
Assets
Accounts receivable	$	54,000		$	34,000		$	20,000
Property, plant, and equipment		297,000			257,000			40,000
Accumulated depreciation		(198,000	)		(177,000	)		21,000
Liabilities and Stockholders’ Equity
Bonds payable		79,000			66,000			13,000
Dividends payable		13,000			9,000			4,000
Common stock, $1 par		42,000			29,000			13,000
Additional paid-in capital		14,000			7,000			7,000
Retained earnings		124,000			101,000			23,000

Selected Income Statement Information for the Year Ended December 31, 2018
Sales revenue	$	175,000
Depreciation		53,000
Gain on sale of equipment		18,000
Net income		48,000

Additional information:

Accounts receivable relate to sales of merchandise.
During 2018, equipment costing $60,000 was sold for cash.
During 2018, bonds payable with a face value of $40,000 were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium.

Required:
Items 1 through 5 represent activities that will be reported in Del Conte's statement of cash flows for the year ended December 31, 2018. The following two responses are required for each item:

Determine the amount that should be reported in Del Conte's 2018 statement of cash flows.
Select the category (i.e., O - Operating activity, I - Investing activity and F - Financing activity) in which the amount should be reported in the statement of cash flows.

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