Question

4)

Financial statements of Rukavina Corporation follow:

Rukavina Corporation Comparative Balance Sheet
	Ending Balance	Beginning Balance
Assets:
Cash and cash equivalents	$34	$31
Accounts receivable	86	82
Inventory	45	41
Property, plant and equipment	678	580
Less: accumulated depreciation	350	300
Total assets	$493	$434
Liabilities and stockholders' equity:
Accounts payable	$67	$72
Bonds payable	145	210
Common stock	92	82
Retained earnings	189	70
Total liabilities and stockholders' equity	$493	$434

Income Statement
Sales	$755
Cost of goods sold	383
Gross margin	372
Selling and administrative expenses	127
Net operating income	245
Income taxes	87
Net income	$158

Cash dividends were $39. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable 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) investing activities for the year was:

$(39)

$(65)

$(98)

$10

5) Alcoser Corporation's most recent balance sheet appears below:

Comparative Balance Sheet
	Ending Balance	Beginning Balance
Assets:
Cash and cash equivalents	$34	$29
Accounts receivable	32	36
Inventory	53	66
Property, plant and equipment	554	480
Less accumulated depreciation	208	206
Total assets	$465	$405
Liabilities and stockholders’ equity:
Accounts payable	$41	$50
Accrued liabilities	17	16
Income taxes payable	28	30
Bonds payable	217	200
Common stock	75	70
Retained earnings	87	39
Total liabilities and equity	$465	$405

Net income for the year was $60. Cash dividends were $12. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable 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) investing activities for the year was:

$74

($74)

($72)

$72