Presented below is a condensed version of the comparative balance sheets for Pronghorn Corporation for the last two years at December 31. 2017 2016Cash $ 176,700 $ 45,000 Accounts receivable 118,900 78,400 Investments 69,900 98,300 Equipment 349,900 176,100 Accumulated depreciation—equipment ( 95,300) ( 65,300)Current liabilities 135,500 94,300 Common stock 138,100 63,700 Retained earnings 345,300 173,300 Additional information:Investments were sold at a gain of $ 9,300; no investments were purchased; no equipment was sold; cash dividends paid were $ 42,500; and net income was $ 214,500. Pronghorn CORPORATIONStatement of Cash FlowsFor the Year Ended December 31, 2017Cash Flows from Operating ActivitiesNet Income214,500Adjustments to reconcile net income toNet Cash Provided by Operating ActivitiesDepreciation Expense30,000Gain on Sale of InvestmentsIncrease in Accounts ReceivableIncrease in Current Liabilities41,20021,400Net Cash Provided by Operating Activities v235,900%24%24 Cash Flows from Investing ActivitiesSale of Investments|Purchase of EquipmentNet Cash Used by Investing ActivitiesCash Flows from Financing ActivitiesIssuance of Common StockPayment of Cash DividendsNet Cash Provided by Financing ActivitiesNet Increase in Cash131,700>

Cost of investment sold = $98,300 - $69,900 Cost of investment sold = $28,400 Sale of investments…

Answered: Presented below is a condensed version…

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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Question

Presented below is a condensed version of the comparative balance sheets for Pronghorn Corporation for the last two years at December 31.

	2017	2016
Cash	$ 176,700	$ 45,000
Accounts receivable	118,900	78,400
Investments	69,900	98,300
Equipment	349,900	176,100
Accumulated depreciation—equipment	( 95,300)	( 65,300)
Current liabilities	135,500	94,300
Common stock	138,100	63,700
Retained earnings	345,300	173,300

Additional information:

Investments were sold at a gain of $ 9,300; no investments were purchased; no equipment was sold; cash dividends paid were $ 42,500; and net income was $ 214,500.