Asset and Contra-Asset Accounts Cash Accounts receivable Inventory Prepaid expenses $ 17 D $ 21 I...
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Asset and Contra-Asset Accounts Cash Accounts receivable Inventory Prepaid expenses $ 17 D $ 21 I $ 52 D $ 16 I $ 18 D $350 I $ 73 I Sales Cost of goods sold Long-term investments Property, plant, and equipment Accumulated depreciation D = Decrease; I = Increase. Long-term investments that cost the company $18 were sold during the year for $40 and land that cost $39 was sold for $21. In addition, the company declared and paid $15 in cash dividends during the year. Besides the sale of land, no other sales or retirement of plant and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stock. The company's income statement for the year follows: Liabilities and Stockholders' Equity Accounts Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings $ 53 I $ 21 D $ 26 I $180 I $ 84 D $ 73 I Gross margin Selling and administrative expenses Net operating income Nonoperating items: Loss on sale of land Gain on sale of investments Income before taxes Income taxes Net income $(18) 22 $930 404 526 390 136 4 140 52 $ 88 The company's beginning cash balance was $122 and its ending balance was $105. Required: 1. Use the indirect method to determine the net cash provided by operating activities for the year. 2. Prepare a statement of cash flows for the year. Asset and Contra-Asset Accounts Cash Accounts receivable Inventory Prepaid expenses $ 17 D $ 21 I $ 52 D $ 16 I $ 18 D $350 I $ 73 I Sales Cost of goods sold Long-term investments Property, plant, and equipment Accumulated depreciation D = Decrease; I = Increase. Long-term investments that cost the company $18 were sold during the year for $40 and land that cost $39 was sold for $21. In addition, the company declared and paid $15 in cash dividends during the year. Besides the sale of land, no other sales or retirement of plant and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stock. The company's income statement for the year follows: Liabilities and Stockholders' Equity Accounts Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings $ 53 I $ 21 D $ 26 I $180 I $ 84 D $ 73 I Gross margin Selling and administrative expenses Net operating income Nonoperating items: Loss on sale of land Gain on sale of investments Income before taxes Income taxes Net income $(18) 22 $930 404 526 390 136 4 140 52 $ 88 The company's beginning cash balance was $122 and its ending balance was $105. Required: 1. Use the indirect method to determine the net cash provided by operating activities for the year. 2. Prepare a statement of cash flows for the year.
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1 Use the indirect method to determine the net cash provided by operating activities Net income 88 A... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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