Burns Corporation's net income last year was $94,600. Changes in the company's balance sheet accounts for the year appear below: Increases (Decreases) Asset and Contra-Asset Accounts: Cash and cash equivalents $ 24,200 Accounts receivable $ 13,700 Inventory $ (17,300 ) Prepaid expenses $ 4,300 Long-term investments $ 10,600 Property, plant, and equipment $ 71,400 Accumulated depreciation $ 32,600 Liability and Equity Accounts: Accounts payable $ (19,600 ) Accrued liabilities $ 17,400 Income taxes payable $ 4,400 Bonds payable $ (62,400 ) Common stock $ 44,000 Retained earnings $ 90,500 The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $4,100. Required: a. Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) b. Prepare the investing activities section of the company's statement of cash flows for the year. c. Prepare the financing activities section of the company's statement of cash flows for the year.
Burns Corporation's net income last year was $94,600. Changes in the company's balance sheet accounts for the year appear below: Increases (Decreases) Asset and Contra-Asset Accounts: Cash and cash equivalents $ 24,200 Accounts receivable $ 13,700 Inventory $ (17,300 ) Prepaid expenses $ 4,300 Long-term investments $ 10,600 Property, plant, and equipment $ 71,400 Accumulated depreciation $ 32,600 Liability and Equity Accounts: Accounts payable $ (19,600 ) Accrued liabilities $ 17,400 Income taxes payable $ 4,400 Bonds payable $ (62,400 ) Common stock $ 44,000 Retained earnings $ 90,500 The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $4,100. Required: a. Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) b. Prepare the investing activities section of the company's statement of cash flows for the year. c. Prepare the financing activities section of the company's statement of cash flows for the year.
Related questions
Charlotte Company's net income last year was $80,000. Changes inthe company's balance sheet accounts for the year appear below: |
| Increases (Decreases) | ||
| Asset andContra-Asset Accounts: | ||
| Cash | $ | 21,500 |
| Accountsreceivable | $ | 18,000 |
| Inventory | $ | (25,000) |
| Prepaidexpenses | $ | 8,000 |
| Long-term investments | $ | 36,000 |
| Property, plant and equipment | $ | 66,000 |
| Accumulated depreciation | $ | 42,000 |
| Liability and EquityAccounts: | ||
| Accountspayable | $ | (25,000) |
| Accruedliabilities | $ | 15,000 |
| Incometaxes payable | $ | 45,000 |
| Bondspayable | $ | (56,000) |
| Commonstock | $ | 26,000 |
| Retainedearnings | $ | 68,500 |
The company did not dispose of any property, plant, andequipment, sell any long-term investments, issue any bonds payable,or repurchase any of its own common stock during the year. Thecompany declared and paid a cash dividend $11,500. |
Required: | |
| a. | Prepare the operating activities section of the company'sstatement of cash flows for the year. (Use the indirect method.)(Amounts to be deducted should be indicated with a minussign. Omit the "$" sign in your response.) |
| Statement of Cash Flows | ||
| Operatingactivities: | ||
| $ | ||
| Adjustments to convert netincome to cash basis: | ||
| $ | |
| Netcash |
| operating activities | $ | |
| b. | Prepare the investing activities section of the company'sstatement of cash flows for the year. (Amounts to bededucted should be indicated with a minus sign. Omit the "$" signin your response.) |
| Statement of Cash Flows | ||
| Investingactivities: | ||
| $ | |
| Netcash |
| investing activities | $ | |
| c. | Prepare the financing activities section of the company'sstatement of cash flows for the year. (Amounts to bededucted should be indicated with a minus sign. Omit the "$" signin your response.) |
| Statement of Cash Flows | ||
| Financingactivities: | ||
| $ |
| Netcash |
| financing activities | $ |
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:
| $58,000 | ||
| $130,000 | ||
| $152,000 | ||
| $105,000 |
