12–181
12–182
73.
Degeare Corporation’s balance sheet and income statement appear below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets
Current assets:
Cash and cash equivalents
$35
$28
Accounts receivable
65
77
Inventory
47
40
Total current assets
147
145
Property, plant, and equipment
518
490
Less accumulated depreciation
233
213
Net property, plant, and equipment
285
277
Total assets
$432
$422
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$61
$54
Accrued liabilities
15
16
Income taxes payable
36
35
Total current liabilities
112
105
Bonds payable
72
100
Total liabilities
184
205
Stockholders’ equity:
Common stock
82
80
Retained earnings
166
137
Total stockholders’ equity
248
217
Total liabilities and stockholders’ equity
$432
$422
Income Statement
$590
363
227
12–183
184
43
13
56
17
$39
Cash dividends were $10. The company sold equipment for $18 that was originally
purchased for $10 and that had accumulated depreciation of $5. The net cash provided by
(used in) operating activities for the year was:
74.
The data given below are from the accounting records of the Kuhn Corporation:
Net Income (accrual basis)
$45,000
Depreciation Expense
$9,000
Decrease in Accounts Payable
$2,500
Decrease in Inventory
$3,000
Increase in Bonds Payable
$10,000
Sale of Common Stock for cash
$30,000
Increase in Accounts Receivable
$4,500
Based on this information, the net cash provided by operating activities using the indirect
method would be:
Net income
(4,500)
75.
Frankin Corporation’s net cash provided by operating activities was $192; its capital
expenditures were $154; and its cash dividends were $27. The company’s free cash flow
was:
76.
Suggett Corporation’s net cash provided by operating activities was $34; its income taxes
were $12; its capital expenditures were $24; and its cash dividends were $7. The
company’s free cash flow was:
77.
Beacham Corporation’s net cash provided by operating activities was $115; its net income
was $95; its capital expenditures were $65; and its cash dividends were $17. The
company’s free cash flow was:
78.
McCorey Corporation recorded the following events last year:
Repurchase by the company of its own common stock
$60,000
Sale of long-term investment
$55,000
Interest paid to lenders
$15,000
Dividends paid to the company’s shareholders
$70,000
Collection by McCorey of a loan made to another company
$75,000
Payment of taxes to governmental bodies
$50,000
On the statement of cash flows, some of these events are classified as operating
activities, some are classified as investing activities, and some are classified as financing
activities.
Based solely on the information above, the net cash provided by (used in) financing
activities on the statement of cash flows would be:
Financing activities:
79.
McCorey Corporation recorded the following events last year:
Repurchase by the company
of its own common stock
$60,000
Sale of long-term
investment
$55,000
Interest paid to lenders
$15,000
Dividends paid to the
company’s shareholders
$70,000
Collection by McCorey of a
loan made to another
company
$75,000
Payment of taxes to
governmental bodies
$50,000
On the statement of cash flows, some of these events are classified as operating
activities, some are classified as investing activities, and some are classified as financing
activities.
Based solely on the information above, the net cash provided by (used in) investing
activities on the statement of cash flows would be:
12–189
80.
Randal Corporation recorded the following activity for the year just ended:
Proceeds from sale of property
$300,000
Cash received from customers
$120,000
Issuance of common stock
$180,000
Issuance of bonds payable
$500,000
Dividends paid to stockholders
$130,000
Purchase of equipment
$400,000
Financing activities:
The net cash provided by financing activities for the year was:
12–190
81.
Randal Corporation recorded the following activity for the year just ended:
Proceeds from sale of
property
$300,000
Cash received from
customers
$120,000
Issuance of common stock
$180,000
Issuance of bonds payable
$500,000
Dividends paid to
stockholders
$130,000
Purchase of equipment
$400,000
The net cash provided by (used in) investing activities for the year was:
12–191
82.
Spackel Corporation recorded the following events last year:
Issuance of shares of the company’s own common stock
$380,000
Purchase of long-term investment
$40,000
Dividends paid to the company’s own shareholders
$18,000
Cash paid to suppliers for inventory purchases
$12,000
Repayment of principal on the company’s own bonds
$370,000
Interest paid to lenders
$6,000
Collection by Spackel of a loan made to another company
$110,000
Purchase of equipment
$350,000
Issuance of common stock
Paying a dividend
Net cash used in financing activities
On the statement of cash flows, some of these events are classified as operating
activities, some are classified as investing activities, and some are classified as financing
activities.
Based solely on the information above, the net cash provided by (used in) financing
activities on the statement of cash flows would be:
83.
Spackel Corporation recorded the following events last year:
Issuance of shares of the company’s own common stock
$380,000
Purchase of long-term investment
$40,000
Dividends paid to the company’s own shareholders
$18,000
Cash paid to suppliers for inventory purchases
$12,000
Repayment of principal on the company’s own bonds
$370,000
Interest paid to lenders
$6,000
Collection by Spackel of a loan made to another company
$110,000
Purchase of equipment
$350,000
On the statement of cash flows, some of these events are classified as operating
activities, some are classified as investing activities, and some are classified as financing
activities.
Based solely on the information above, the net cash provided by (used in) investing
activities on the statement of cash flows would be:
12–193
12–194
84.
Alcoser Corporation’s most recent balance sheet appears below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets:
Cash and cash equivalents
$34
$29
Accounts receivable
32
36
Inventory
53
66
Property, plant and equipment
554
480
Less accumulated depreciation
208
206
Total assets
$465
$405
Liabilities and stockholders’ equity:
Accounts payable
$41
$50
Accrued liabilities
17
16
Income taxes payable
28
30
Bonds payable
217
200
Common stock
75
70
Retained earnings
87
39
Total liabilities and equity
$465
$405
Net income for the year was $60. Cash dividends were $12. The company did not dispose
of any property, plant, and equipment. It 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:
12–195
12–196
85.
Alcoser Corporation’s most recent balance sheet appears below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets:
Cash and cash equivalents
$34
$29
Accounts receivable
32
36
Inventory
53
66
Property, plant and equipment
554
480
Less accumulated depreciation
208
206
Total assets
$465
$405
Liabilities and stockholders’ equity:
Accounts payable
$41
$50
Accrued liabilities
17
16
Income taxes payable
28
30
Bonds payable
217
200
Common stock
75
70
Retained earnings
87
39
Total liabilities and equity
$465
$405
Net income for the year was $60. Cash dividends were $12. The company did not dispose
of any property, plant, and equipment. It 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:
12–197
12–198
86.
Alcoser Corporation’s most recent balance sheet appears below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets:
Cash and cash equivalents
$34
$29
Accounts receivable
32
36
Inventory
53
66
Property, plant and equipment
554
480
Less accumulated depreciation
208
206
Total assets
$465
$405
Liabilities and stockholders’ equity:
Accounts payable
$41
$50
Accrued liabilities
17
16
Income taxes payable
28
30
Bonds payable
217
200
Common stock
75
70
Retained earnings
87
39
Total liabilities and equity
$465
$405
Net income for the year was $60. Cash dividends were $12. The company did not dispose
of any property, plant, and equipment. It 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:
12–199
12–200
87.
Hirshberg Corporation’s comparative balance sheet appears below:
Ending Balance
Beginning Balance
Assets:
Current assets:
Cash and cash equivalents
$42,000
$31,000
Accounts receivable
22,000
18,000
Inventory
66,000
70,000
Total current assets
130,000
119,000
Property, plant, and equipment
401,000
377,000
Less accumulated depreciation
207,000
177,000
Net property, plant, and equipment
194,000
200,000
Total assets
$324,000
$319,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$15,000
$17,000
Accrued liabilities
45,000
38,000
Income taxes payable
53,000
51,000
Total current liabilities
113,000
106,000
Bonds payable
83,000
91,000
Total liabilities
196,000
197,000
Stockholders’ equity:
Common stock
27,000
28,000
Retained earnings
101,000
94,000
Total stockholders’ equity
128,000
122,000
Total liabilities and stockholders’ equity
$324,000
$319,000
The company’s net income (loss) for the year was $11,000 and its cash dividends were
$4,000. It did not sell or retire any property, plant, and equipment during the year.
The company’s net cash provided by operating activities is: