Question

6) MC Qu. 89 Walmouth Corporations comparative ...

Walmouth Corporation's comparative balance sheet and income statement for last year appear below:

Comparative Balance Sheet
	Ending Balance	Beginning Balance
Cash	$40,000	$32,000
Accounts receivable	89,000	79,000
Inventory	48,000	55,000
Prepaid expenses	8,000	11,000
Long-term investments	250,000	210,000
Property, plant and equipment	550,000	550,000
Less accumulated depreciation	264,000	239,000
Total assets	$721,000	$698,000
Accounts payable	$58,000	$46,000
Accrued liabilities	15,000	19,000
Income taxes payable	55,000	41,000
Bonds payable	100,000	160,000
Common stock	150,000	140,000
Retained earnings	343,000	292,000
Total liabilities and stockholders' equity	$721,000	$698,000

Income Statement
Sales	$870,000
Cost of goods sold	450,000
Gross margin	420,000
Selling and administrative expense	270,000
Net operating income	150,000
Income taxes	45,000
Net income	$105,000

The company declared and paid a cash dividend of $54,000 during the year. It did not purchase or dispose of any property, plant, and equipment. It did not issue any bonds or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.

The net cash provided by (used in) operating activities last year was:

A)$58,000

B)$130,000

C)$105,000

D)$152,000