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Gross margin
235
Selling and administrative expense
158
Net operating income
77
Income taxes
23
Net income
$54
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:
12-103
12-104
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:
12-107
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:
12-108
12-109
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:
12-110
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
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:
12-113
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
12-114
flows.
The net cash provided by (used in) investing activities for the year was:
12-115
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
12-116
flows.
The net cash provided by (used in) financing activities for the year was:
12-117
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.
12-118
The net cash provided by (used in) operating activities for the year was:
12-119
