Gain on sale of investments 80
income before tax 1,270
income tax expense 550
net income 720
cash dividends 260
income retained in business $460
additional information:
during the year, $70 of common stock was issued in exchange for plant assets.
no plant assets were sold in 2017.
prepare a statement of cash flows using the indirect method.

See the explanation section

Explanation:

                          Bonita Company

                     Statement of cash flow

     For the year ended, December 31, 2017

                         (Indirect Method)

Net Income                                                            $720

Cash flow from operating activities

Depreciation                                       $120

Gain on sale of investment                  (80)

Increase in Accounts receivable       (460)

Decrease in Inventory                         270

Increase in Accounts Payable            260

Decrease in accrued liabilities           (60)                  

                                                                               50  

net cash provided by operating activities         $770      

Cash flows from investing activities

Purchase of plant asset                       (170)

Sale of Held-to-Maturity Investments 230

Net Cash Provided by Investing Activities          60

Cash Flows from Financing Activities

Payment of cash dividends                 (260)

Redemption of Bonds Payable            (180)

Issuance of capital stock                       190

Net cash used by financing activities               (250)

Net increase in cash                                               580

Cash at the beginning period                              1,180

Cash at the end of period                                   1,760

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know