32. The change in each of Kendall Corporation’s balance sheet accounts last year follows:
Increase Decrease
Cash $3,000
Accounts Receivable $2,000
Inventory $3,000
Prepaid Expenses $4,000
Long-term Investments $15,000
Property, Plant and Equipment $10,000
Accumulated Depreciation $8,000
Accounts Payable $9,000
Accrued Liabilities $6,000
Bonds Payable $13,000
Common Stock $5,000
Retained Earnings $4,000
Kendall Corporation’s income statement for the year was:
Sales $300,000
Cost of goods sold 180,000
Gross margin 120,000
Selling and administrative expense 116,000
Net income $4,000
There were no sales or retirements of property, plant, and equipment and no dividends paid
during the year. The company pays no income taxes and it did not purchase any long-term
investments, issue any bonds payable, or repurchase any of its own common stock. The net cash
provided by operating activities on the statement of cash flows is determined using the direct
method.
Using the direct method, sales adjusted to a cash basis would be:
33. The change in each of Kendall Corporation’s balance sheet accounts last year follows:
Increase Decrease
Cash $3,000
Accounts Receivable $2,000
Inventory $3,000
Prepaid Expenses $4,000
Long-term Investments $15,000
Property, Plant and Equipment $10,000
Accumulated Depreciation $8,000
Accounts Payable $9,000
Accrued Liabilities $6,000
Bonds Payable $13,000
Common Stock $5,000
Retained Earnings $4,000
Kendall Corporation’s income statement for the year was:
Sales $300,000
Cost of goods sold 180,000
Gross margin 120,000
Selling and administrative expense 116,000
Net income $4,000
There were no sales or retirements of property, plant, and equipment and no dividends paid
during the year. The company pays no income taxes and it did not purchase any long-term
investments, issue any bonds payable, or repurchase any of its own common stock. The net cash
provided by operating activities on the statement of cash flows is determined using the direct
method.
Using the direct method, the cost of goods sold adjusted to a cash basis would be:
34. The change in each of Kendall Corporation’s balance sheet accounts last year follows:
Increase Decrease
Cash $3,000
Accounts Receivable $2,000
Inventory $3,000
Prepaid Expenses $4,000
Long-term Investments $15,000
Property, Plant and Equipment $10,000
Accumulated Depreciation $8,000
Accounts Payable $9,000
Accrued Liabilities $6,000
Bonds Payable $13,000
Common Stock $5,000
Retained Earnings $4,000
Kendall Corporation’s income statement for the year was:
Sales $300,000
Cost of goods sold 180,000
Gross margin 120,000
Selling and administrative expense 116,000
Net income $4,000
There were no sales or retirements of property, plant, and equipment and no dividends paid
during the year. The company pays no income taxes and it did not purchase any long-term
investments, issue any bonds payable, or repurchase any of its own common stock. The net cash
provided by operating activities on the statement of cash flows is determined using the direct
method.
The selling and administrative expense adjusted to a cash basis would be:
35. The change in each of Kendall Corporation’s balance sheet accounts last year follows:
Increase Decrease
Cash $3,000
Accounts Receivable $2,000
Inventory $3,000
Prepaid Expenses $4,000
Long-term Investments $15,000
Property, Plant and Equipment $10,000
Accumulated Depreciation $8,000
Accounts Payable $9,000
Accrued Liabilities $6,000
Bonds Payable $13,000
Common Stock $5,000
Retained Earnings $4,000
Kendall Corporation’s income statement for the year was:
Sales $300,000
Cost of goods sold 180,000
Gross margin 120,000
Selling and administrative expense 116,000
Net income $4,000
There were no sales or retirements of property, plant, and equipment and no dividends paid
during the year. The company pays no income taxes and it did not purchase any long-term
investments, issue any bonds payable, or repurchase any of its own common stock. The net cash
provided by operating activities on the statement of cash flows is determined using the direct
method.
The net cash provided (used) by investing activities would be:
36. The change in each of Kendall Corporation’s balance sheet accounts last year follows:
Increase Decrease
Cash $3,000
Accounts Receivable $2,000
Inventory $3,000
Prepaid Expenses $4,000
Long-term Investments $15,000
Property, Plant and Equipment $10,000
Accumulated Depreciation $8,000
Accounts Payable $9,000
Accrued Liabilities $6,000
Bonds Payable $13,000
Common Stock $5,000
Retained Earnings $4,000
Kendall Corporation’s income statement for the year was:
Sales $300,000
Cost of goods sold 180,000
Gross margin 120,000
Selling and administrative expense 116,000
Net income $4,000
There were no sales or retirements of property, plant, and equipment and no dividends paid
during the year. The company pays no income taxes and it did not purchase any long-term
investments, issue any bonds payable, or repurchase any of its own common stock. The net cash
provided by operating activities on the statement of cash flows is determined using the direct
method.
The net cash provided (used) by financing activities would be:
37. The changes in Northrup Corporation’s balance sheet account balances for last year
appear below:
Increases
(Decreases)
Asset and Contra-Asset Accounts:
Cash $4,000
Accounts receivable ($4,000)
Inventory ($2,000)
Prepaid expenses $2,000
Long-term investments $40,000
Property, plant and equipment $25,000
Accumulated depreciation $68,000
Liability and Equity Accounts:
Accounts payable ($6,000)
Accrued liabilities $8,000
Income taxes payable ($8,000)
Bonds payable ($70,000)
Common stock $10,000
Retained earnings $63,000
The company’s income statement for the year appears below:
Income Statement
Sales $980,000
Cost of goods sold 540,000
Gross margin 440,000
Selling and administrative expense 310,000
Net operating income 130,000
Income taxes 39,000
Net income $91,000
The company declared and paid $28,000 in cash dividends during the year. It did not dispose of
any property, plant, and equipment during the year. The company uses the direct method to
determine the net cash provided by operating activities.
On the statement of cash flows, the sales adjusted to a cash basis would be:
38. The changes in Northrup Corporation’s balance sheet account balances for last year
appear below:
Increases
(Decreases)
Asset and Contra-Asset Accounts:
Cash $4,000
Accounts receivable ($4,000)
Inventory ($2,000)
Prepaid expenses $2,000
Long-term investments $40,000
Property, plant and equipment $25,000
Accumulated depreciation $68,000
Liability and Equity Accounts:
Accounts payable ($6,000)
Accrued liabilities $8,000
Income taxes payable ($8,000)
Bonds payable ($70,000)
Common stock $10,000
Retained earnings $63,000
The company’s income statement for the year appears below:
Income Statement
Sales $980,000
Cost of goods sold 540,000
Gross margin 440,000
Selling and administrative expense 310,000
Net operating income 130,000
Income taxes 39,000
Net income $91,000
The company declared and paid $28,000 in cash dividends during the year. It did not dispose of
any property, plant, and equipment during the year. 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:
39. The changes in Northrup Corporation’s balance sheet account balances for last year
appear below:
Increases
(Decreases)
Asset and Contra-Asset Accounts:
Cash $4,000
Accounts receivable ($4,000)
Inventory ($2,000)
Prepaid expenses $2,000
Long-term investments $40,000
Property, plant and equipment $25,000
Accumulated depreciation $68,000
Liability and Equity Accounts:
Accounts payable ($6,000)
Accrued liabilities $8,000
Income taxes payable ($8,000)
Bonds payable ($70,000)
Common stock $10,000
Retained earnings $63,000
The company’s income statement for the year appears below:
Income Statement
Sales $980,000
Cost of goods sold 540,000
Gross margin 440,000
Selling and administrative expense 310,000
Net operating income 130,000
Income taxes 39,000
Net income $91,000
The company declared and paid $28,000 in cash dividends during the year. It did not dispose of
any property, plant, and equipment during the year. The company uses the direct method to
determine the net cash provided by operating activities.
On the statement of cash flows, the selling and administrative expense adjusted to a cash basis
would be:
40. The changes in Northrup Corporation’s balance sheet account balances for last year
appear below:
Increases
(Decreases)
Asset and Contra-Asset Accounts:
Cash $4,000
Accounts receivable ($4,000)
Inventory ($2,000)
Prepaid expenses $2,000
Long-term investments $40,000
Property, plant and equipment $25,000
Accumulated depreciation $68,000
Liability and Equity Accounts:
Accounts payable ($6,000)
Accrued liabilities $8,000
Income taxes payable ($8,000)
Bonds payable ($70,000)
Common stock $10,000
Retained earnings $63,000
The company’s income statement for the year appears below:
Income Statement
Sales $980,000
Cost of goods sold 540,000
Gross margin 440,000
Selling and administrative expense 310,000
Net operating income 130,000
Income taxes 39,000
Net income $91,000
The company declared and paid $28,000 in cash dividends during the year. It did not dispose of
any property, plant, and equipment during the year. The company uses the direct method to
determine the net cash provided by operating activities.
On the statement of cash flows, the income tax expense adjusted to a cash basis would be:
41. Last year, Knox Corporation reported on its income statement sales of $375,000 and cost
of goods sold of $140,000. During the year, the balance in accounts receivable increased $30,000,
the balance in accounts payable decreased $25,000, and the balance in inventory increased
$10,000. The company uses the direct method to determine the net cash provided by operating
activities on its statement of cash flows.
Under the direct method, sales adjusted to a cash basis would be:
42. Last year, Knox Corporation reported on its income statement sales of $375,000 and cost
of goods sold of $140,000. During the year, the balance in accounts receivable increased $30,000,
the balance in accounts payable decreased $25,000, and the balance in inventory increased
$10,000. The company uses the direct method to determine the net cash provided by operating
activities on its statement of cash flows.
Under the direct method, cost of goods sold adjusted to a cash basis would be: