Cash dividends were $12. The company did not retire or sell any property, plant, and equipment
during the year. The net cash provided by (used in) operating activities for the year was:
21. Last year Anderson Corporation reported a cost of goods sold of $100,000. The
company’s inventory at the beginning of the year was $11,000, and its inventory at the end of the
year was $19,000. The prepaid expense account increased by $2,000 between the beginning and
end of the year, and the accounts payable account decreased by $4,000. Cost of goods sold
adjusted to the cash basis under the direct method would be:
22. Last year Marton Corporation reported a cost of goods sold of $720,000 on its income
statement. The following additional data were taken from the company’s comparative balance
sheet for the year:
Ending Beginning
Inventory $105,000 $85,000
Accounts payable $65,000 $92,000
The company uses the direct method to determine the net cash provided by operating activities
on the statement of cash flows. The cost of goods sold adjusted to a cash basis would be:
23. Shimko Corporation’s most recent comparative balance sheet and income statement
appear below:
Comparative Balance Sheet
Ending Balance Beginning Balance
Assets:
Cash and cash equivalents $37 $32
Accounts receivable 34 32
Inventory 59 55
Property, plant and equipment 447 390
Less accumulated depreciation 212 188
Total assets $365 $321
Liabilities and stockholders’ equity:
Accounts payable $37 $32
Bonds payable 217 270
Common stock 21 20
Retained earnings 90 (1)
Total liabilities and equity $365 $321
Income Statement
Sales $891
Cost of goods sold 539
Gross margin 352
Selling and administrative expense 195
Net operating income 157
Income taxes 47
Net income $110
The company paid a cash dividend of $19 and it did not dispose of any property, plant, and
equipment. The company 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) operating activities for the year was:
24. Shimko Corporation’s most recent comparative balance sheet and income statement
appear below:
Comparative Balance Sheet
Ending Balance Beginning Balance
Assets:
Cash and cash equivalents $37 $32
Accounts receivable 34 32
Inventory 59 55
Property, plant and equipment 447 390
Less accumulated depreciation 212 188
Total assets $365 $321
Liabilities and stockholders’ equity:
Accounts payable $37 $32
Bonds payable 217 270
Common stock 21 20
Retained earnings 90 (1)
Total liabilities and equity $365 $321
Income Statement
Sales $891
Cost of goods sold 539
Gross margin 352
Selling and administrative expense 195
Net operating income 157
Income taxes 47
Net income $110
The company paid a cash dividend of $19 and it did not dispose of any property, plant, and
equipment. The company 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:
25. Shimko Corporation’s most recent comparative balance sheet and income statement
appear below:
Comparative Balance Sheet
Ending Balance Beginning Balance
Assets:
Cash and cash equivalents $37 $32
Accounts receivable 34 32
Inventory 59 55
Property, plant and equipment 447 390
Less accumulated depreciation 212 188
Total assets $365 $321
Liabilities and stockholders’ equity:
Accounts payable $37 $32
Bonds payable 217 270
Common stock 21 20
Retained earnings 90 (1)
Total liabilities and equity $365 $321
Income Statement
Sales $891
Cost of goods sold 539
Gross margin 352
Selling and administrative expense 195
Net operating income 157
Income taxes 47
Net income $110
The company paid a cash dividend of $19 and it did not dispose of any property, plant, and
equipment. The company 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) financing activities for the year was:
26. The most recent balance sheet and income statement of Oldaker Corporation appear
below:
Comparative Balance Sheet
Ending Balance Beginning Balance
Assets:
Cash and cash equivalents $31 $29
Accounts receivable 73 79
Inventory 44 45
Property, plant and equipment 728 590
Less accumulated depreciation 253 242
Total assets $623 $501
Liabilities and stockholders’ equity:
Accounts payable $56 $63
Accrued liabilities 21 22
Income taxes payable 26 28
Bonds payable 121 110
Common stock 33 30
Retained earnings 366 248
Total liabilities and stockholders’ equity $623 $501
Income Statement
Sales $921
Cost of goods sold 575
Gross margin 346
Selling and administrative expense 117
Net operating income 229
Income taxes 69
Net income $160
The company paid a cash dividend of $42 and it did not dispose of any property, plant, and
equipment. The company did not retire 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) operating activities for the year was:
27. The most recent balance sheet and income statement of Oldaker Corporation appear
below:
Comparative Balance Sheet
Ending Balance Beginning Balance
Assets:
Cash and cash equivalents $31 $29
Accounts receivable 73 79
Inventory 44 45
Property, plant and equipment 728 590
Less accumulated depreciation 253 242
Total assets $623 $501
Liabilities and stockholders’ equity:
Accounts payable $56 $63
Accrued liabilities 21 22
Income taxes payable 26 28
Bonds payable 121 110
Common stock 33 30
Retained earnings 366 248
Total liabilities and stockholders’ equity $623 $501
Income Statement
Sales $921
Cost of goods sold 575
Gross margin 346
Selling and administrative expense 117
Net operating income 229
Income taxes 69
Net income $160
The company paid a cash dividend of $42 and it did not dispose of any property, plant, and
equipment. The company did not retire 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:
28. The most recent balance sheet and income statement of Oldaker Corporation appear
below:
Comparative Balance Sheet
Ending Balance Beginning Balance
Assets:
Cash and cash equivalents $31 $29
Accounts receivable 73 79
Inventory 44 45
Property, plant and equipment 728 590
Less accumulated depreciation 253 242
Total assets $623 $501
Liabilities and stockholders’ equity:
Accounts payable $56 $63
Accrued liabilities 21 22
Income taxes payable 26 28
Bonds payable 121 110
Common stock 33 30
Retained earnings 366 248
Total liabilities and stockholders’ equity $623 $501
Income Statement
Sales $921
Cost of goods sold 575
Gross margin 346
Selling and administrative expense 117
Net operating income 229
Income taxes 69
Net income $160
The company paid a cash dividend of $42 and it did not dispose of any property, plant, and
equipment. The company did not retire 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) financing activities for the year was:
29. Kilduff Corporation’s balance sheet and income statement appear below:
Comparative Balance Sheet
Ending Balance Beginning Balance
Assets:
Cash and cash equivalents $36 $38
Accounts receivable 36 32
Inventory 49 55
Property, plant and equipment 707 580
Less accumulated depreciation 316 315
Total assets $512 $390
Liabilities and stockholders’ equity:
Accounts payable $71 $64
Accrued liabilities 22 19
Income taxes payable 34 41
Bonds payable 71 100
Common stock 32 30
Retained earnings 282 136
Total liabilities and stockholders’ equity $512 $390
Income Statement
Sales $1,174
Cost of goods sold 771
Gross margin 403
Selling and administrative expense 146
Net operating income 257
Gain on sale of equipment 14
Income before taxes 271
Income taxes 81
Net income $190
The company sold equipment for $19 that was originally purchased for $10 and that had
accumulated depreciation of $5. The company paid a cash dividend of $44 and it did not issue
any bonds payable or repurchase any of its own common stock.
The net cash provided by (used in) operating activities for the year was:
30. Kilduff Corporation’s balance sheet and income statement appear below:
Comparative Balance Sheet
Ending Balance Beginning Balance
Assets:
Cash and cash equivalents $36 $38
Accounts receivable 36 32
Inventory 49 55
Property, plant and equipment 707 580
Less accumulated depreciation 316 315
Total assets $512 $390
Liabilities and stockholders’ equity:
Accounts payable $71 $64
Accrued liabilities 22 19
Income taxes payable 34 41
Bonds payable 71 100
Common stock 32 30
Retained earnings 282 136
Total liabilities and stockholders’ equity $512 $390
Income Statement
Sales $1,174
Cost of goods sold 771
Gross margin 403
Selling and administrative expense 146
Net operating income 257
Gain on sale of equipment 14
Income before taxes 271
Income taxes 81
Net income $190
The company sold equipment for $19 that was originally purchased for $10 and that had
accumulated depreciation of $5. The company paid a cash dividend of $44 and it did not issue
any bonds payable or repurchase any of its own common stock.
The net cash provided by (used in) investing activities for the year was:
31. Kilduff Corporation’s balance sheet and income statement appear below:
Comparative Balance Sheet
Ending Balance Beginning Balance
Assets:
Cash and cash equivalents $36 $38
Accounts receivable 36 32
Inventory 49 55
Property, plant and equipment 707 580
Less accumulated depreciation 316 315
Total assets $512 $390
Liabilities and stockholders’ equity:
Accounts payable $71 $64
Accrued liabilities 22 19
Income taxes payable 34 41
Bonds payable 71 100
Common stock 32 30
Retained earnings 282 136
Total liabilities and stockholders’ equity $512 $390
Income Statement
Sales $1,174
Cost of goods sold 771
Gross margin 403
Selling and administrative expense 146
Net operating income 257
Gain on sale of equipment 14
Income before taxes 271
Income taxes 81
Net income $190
The company sold equipment for $19 that was originally purchased for $10 and that had
accumulated depreciation of $5. The company paid a cash dividend of $44 and it did not issue
any bonds payable or repurchase any of its own common stock.
The net cash provided by (used in) financing activities for the year was: