Baskin Company's net income last year was $98,000. Changes in the company's balance sheet accounts for the
Question:
Baskin Company's net income last year was $98,000. Changes in the company's balance sheet accounts for the year appear below:
Increases (Decreases) | ||
Debit balances: | ||
Cash | $24,000 | |
Accounts receivable | 15,000 | |
Inventory | (18,000) | |
Prepaid expenses | (6,000) | |
Long-term investments | 10,000 | |
Plant and equipment | 40,000 | |
Credit balances: | ||
Accumulated depreciation | 32,000 | |
Accounts payable | (14,000) | |
Accrued liabilities | 11,000 | |
Taxes payable | 4,000 | |
Bonds payable | (40,000) | |
Common stock | 10,000 | |
Retained earnings | 62,000 |
The company declared and paid cash dividends of $36,000 last year.
Required:
A. Need the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) Amounts to be deducted should be indicated by a minus sign.
Baskin Company | |
Operating Activities Section | |
Net income | $ |
Add (deduct) adjusting items: | |
Net cash flows from operating activities | $ |
B. Need the investing activities section of the company's statement of cash flows for the year. Amounts to be deducted should be indicated by a minus sign.
Baskin Company | |
Investing Activities Section | |
$ | |
Net cash flows from investing activities | $ |
C. Need the financing activities section of the company's statement of cash flows for the year. Amounts to be deducted should be indicated by a minus sign.
Baskin Company | |
Financing Activities Section | |
$ | |
Net cash flows from financing activities |
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.