12–161
61.
Autry Corporation’s balance sheet and income statement appear below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets
Current assets:
Cash and cash equivalents
$33
$26
Accounts receivable
67
68
Inventory
54
65
Total current assets
154
159
Property, plant, and equipment
673
520
Less accumulated depreciation
315
293
Net property, plant, and equipment
358
227
Total assets
$512
$386
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$35
$34
Accrued liabilities
19
18
Income taxes payable
29
29
Total current liabilities
83
81
Bonds payable
36
50
Total liabilities
119
131
Stockholders’ equity:
Common stock
33
30
Retained earnings
360
225
Total stockholders’ equity
393
255
Total liabilities and stockholders’ equity
$512
$386
Income Statement
Sales
Cost of goods sold
Gross margin
12–162
Selling and administrative expense
Net operating income
Gain on sale of plant and equipment
Income before taxes
Income taxes
Net income
Net cash used in investing activities
Cash dividends were $40. The company sold equipment for $19 that was originally
purchased for $6 and that had accumulated depreciation of $4. The net cash provided by
(used in) investing activities for the year was:
12–163
62.
Furis Corporation’s cash and cash equivalents consist of cash and marketable securities.
Last year the company’s cash account decreased by $12,000 and its marketable securities
account increased by $19,000. Cash provided by operating activities was $18,000. Net
cash used in financing activities was $12,000. Based on this information, the net cash flow
from investing activities on the statement of cash flows was:
12–164
63.
The following events occurred last year for the Cart Corporation:
Issuance of common stock
$52,000
Dividends paid to shareholders
$15,000
Sale of long-term investment
$12,000
Interest paid to a lender
$8,000
Proceeds from sale of used equipment
$34,000
Repurchase of common stock
$13,000
Financing activities:
(15,000)
Based solely on the above information, the net cash provided by financing activities for
the year on the statement of cash flows was:
12–165
64.
Illies Corporation’s comparative balance sheet appears below:
Ending
Balance
Beginning
Balance
Assets:
Current assets:
Cash and cash equivalents
$40,000
$33,000
Accounts receivable
19,000
21,000
Inventory
67,000
69,000
Total current assets
126,000
123,000
Property, plant, and equipment
358,000
339,000
Less accumulated depreciation
156,000
132,000
Net property, plant, and equipment
202,000
207,000
Total assets
$328,000
$330,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$18,000
$19,000
Accrued liabilities
54,000
59,000
Income taxes payable
48,000
42,000
Total current liabilities
120,000
120,000
Bonds payable
82,000
86,000
Total liabilities
202,000
206,000
Stockholders’ equity:
Common stock
23,000
22,000
Retained earnings
103,000
102,000
Total stockholders’ equity
126,000
124,000
Total liabilities and stockholders’
equity
$328,000
$330,000
The company did not dispose of any property, plant, and equipment during the year. Its
net income for the year was $5,000 and its cash dividends were $4,000. The company did
not issue any bonds payable or purchase any of its own common stock during the year. Its
net cash provided by operating activities and net cash used in financing activities are:
12–167
12–168
65.
Birchett Corporation’s most recent balance sheet appears below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets
Current assets:
Cash and cash equivalents
$27
$26
Accounts receivable
65
59
Inventory
49
55
Total current assets
141
140
Property, plant, and equipment
533
490
Less accumulated depreciation
234
231
Net property, plant, and equipment
299
259
Total assets
$440
$399
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$28
$26
Total current liabilities
28
26
Bonds payable
169
200
Total liabilities
197
226
Stockholders’ equity:
Common stock
71
70
Retained earnings
172
103
Total stockholders’ equity
243
173
Total liabilities and stockholders’ equity
$440
$399
The company’s net income for the year was $91 and it did not sell or retire any property,
plant, and equipment during the year. Cash dividends were $22. The net cash provided by
(used in) operating activities for the year was:
12–169
66.
Norbury Corporation’s net income last year was $34,000. The company did not sell or retire
any property, plant, and equipment last year. Changes in selected balance sheet accounts
for the year appear below:
Increases
(Decreases)
Asset and Contra-Asset Accounts:
Accounts receivable
$12,000
Inventory
($9,000)
Prepaid expenses
$4,000
Accumulated depreciation
$19,000
Liability Accounts:
Accounts payable
$5,000
Accrued liabilities
$7,000
Income taxes payable
($6,000)
Based solely on this information, the net cash provided by operating activities under the
indirect method on the statement of cash flows would be:
Net income
Adjustments to convert net income to a cash basis:
Depreciation
Increase in accounts receivable
Decrease in inventory
Increase in prepaid expenses
Increase in accounts payable
12–171
12–172
67.
Swinger Corporation’s comparative balance sheet appears below:
Ending Balance
Beginning Balance
Assets:
Current assets:
Cash and cash equivalents
$47,000
$31,000
Accounts receivable
23,000
22,000
Inventory
66,000
64,000
Total current assets
136,000
117,000
Property, plant, and equipment
356,000
338,000
Less accumulated depreciation
184,000
161,000
Net property, plant, and equipment
172,000
177,000
Total assets
$308,000
$294,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$17,000
$16,000
Accrued liabilities
43,000
44,000
Income taxes payable
63,000
61,000
Total current liabilities
123,000
121,000
Bonds payable
83,000
80,000
Total liabilities
206,000
201,000
Stockholders’ equity:
Common stock
27,000
24,000
Retained earnings
75,000
69,000
Total stockholders’ equity
102,000
93,000
Total liabilities and stockholders’ equity
$308,000
$294,000
The company did not dispose of any property, plant, and equipment during the year. Its net
income for the year was $10,000. The net cash provided by operating activities is:
12–173
12–174
68.
Majorn Auto Parts Store had net income of $81,000 for the year just ended. Majorn
collected the following additional information to prepare its statement of cash flows for
the year:
Increase in accounts receivable
$102,000
Decrease in inventory
$18,000
Decrease in accounts payable
$35,000
Increase in retained earnings
$29,000
Cash received from sale of building
$215,000
Gain on sale of building
$47,000
Depreciation expense
$32,000
Net income
Adjustments to convert net income to a cash basis:
Decrease in inventory
Increase in accounts receivable
Decrease in accounts payable
Gain on sale of building
(134,000)
Net cash provided by operating activities
($53,000)
Majorn uses the indirect method to prepare its statement of cash flows. What is Majorn’s
net cash provided (used) by operating activities?
12–175
69.
Klutz Dance Studio had net income of $167,000 for the year just ended. Klutz collected the
following additional information to prepare its statement of cash flows for the year:
Decrease in accounts receivable
$24,000
Increase in accounts payable
$11,000
Increase in retained earnings
$92,000
Cash paid for purchase of new music
equipment
$20,000
Depreciation expense
$5,000
Net income
$167,000
Adjustments to convert net income to a cash basis:
Depreciation
$5,000
Decrease in accounts receivable
24,000
Increase in accounts payable
11,000
Net cash provided by (used in) operating activities
$207,000
Klutz uses the indirect method to prepare its statement of cash flows. What is Klutz’s net
cash provided (used) by operating activities?
12–176
12–177
70.
Carriveau Corporation’s most recent balance sheet appears below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets
Current assets:
Cash and cash equivalents
$31
$34
Accounts receivable
73
67
Inventory
74
64
Total current assets
178
165
Property, plant, and equipment
456
370
Less accumulated depreciation
207
196
Net property, plant, and equipment
249
174
Total assets
$427
$339
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$49
$56
Accrued liabilities
19
20
Income taxes payable
26
24
Total current liabilities
94
100
Bonds payable
152
200
Total liabilities
246
300
Stockholders’ equity:
Common stock
35
30
Retained earnings
146
9
Total stockholders’ equity
181
39
Total liabilities and stockholders’ equity
$427
$339
Net income for the year was $172. Cash dividends were $35. The company did not sell or
retire any property, plant, and equipment during the year. The net cash provided by (used
in) operating activities for the year was:
12–178
12–179
71.
Morbeck Corporation’s net income last year was $56,000. The company paid a cash
dividend of $31,000 and did not sell or retire any property, plant, and equipment last year.
Changes in selected balance sheet accounts for the year appear below:
Increases
(Decreases)
Asset and Contra-Asset Accounts:
Accounts receivable
($8,000)
Inventory
($6,000)
Prepaid expenses
$12,000
Accumulated depreciation
$23,000
Liability Accounts:
Accounts payable
($10,000)
Accrued liabilities
$7,000
Income taxes payable
$5,000
Bonds payable
$40,000
Net income
$56,000
Adjustments to convert net income to a cash basis:
Depreciation
Decrease in accounts receivable
Decrease in inventory
Increase in prepaid expenses
(12,000)
Decrease in accounts payable
(10,000)
Increase in accrued liabilities
Increase in income taxes payable
Based solely on this information, the net cash provided by operating activities under the
indirect method on the statement of cash flows would be:
12–180
72.
The following transactions occurred last year at Jogger Corporation:
Issuance of shares of the company’s own common stock
$110,000
Dividends paid to the company’s own shareholders
$3,000
Sale of long-term investment
$4,000
Interest paid to lenders
$8,000
Retirement of the company’s own bonds payable
$100,000
Proceeds from sale of the company’s used equipment
$29,000
Purchase of new equipment
$170,000
Repaying principal on bonds payable
Issuance of common stock
Paying a dividend
Based solely on the above information, the net cash provided by financing activities for
the year on the statement of cash flows would be: