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12–201
12–202
88.
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 used in investing activities is:
12–203
12–204
89.
Walmouth Corporation’s comparative balance sheet and income statement for last year
appear below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Cash
$40,000
$32,000
Accounts receivable
89,000
79,000
Inventory
48,000
55,000
Prepaid expenses
8,000
11,000
Long-term investments
250,000
210,000
Property, plant and equipment
550,000
550,000
Less accumulated depreciation
264,000
239,000
Total assets
$721,000
$698,000
Accounts payable
$58,000
$46,000
Accrued liabilities
15,000
19,000
Income taxes payable
55,000
41,000
Bonds payable
100,000
160,000
Common stock
150,000
140,000
Retained earnings
343,000
292,000
Total liabilities and stockholders’ equity
$721,000
$698,000
Income Statement
Sales
$870,000
Cost of goods sold
450,000
Gross margin
420,000
Selling and administrative expense
270,000
Net operating income
150,000
Income taxes
45,000
Net income
$105,000
The company declared and paid a cash dividend of $54,000 during the year. It did not
purchase or dispose of any property, plant, and equipment. It did not issue any bonds or
repurchase any of its own common stock. The following questions pertain to the
company’s statement of cash flows.
12–205
The net cash provided by (used in) operating activities last year was:
12–206
90.
Walmouth Corporation’s comparative balance sheet and income statement for last year
appear below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Cash
$40,000
$32,000
Accounts receivable
89,000
79,000
Inventory
48,000
55,000
Prepaid expenses
8,000
11,000
Long-term investments
250,000
210,000
Property, plant and equipment
550,000
550,000
Less accumulated depreciation
264,000
239,000
Total assets
$721,000
$698,000
Accounts payable
$58,000
$46,000
Accrued liabilities
15,000
19,000
Income taxes payable
55,000
41,000
Bonds payable
100,000
160,000
Common stock
150,000
140,000
Retained earnings
343,000
292,000
Total liabilities and stockholders’ equity
$721,000
$698,000
Income Statement
Sales
$870,000
Cost of goods sold
450,000
Gross margin
420,000
Selling and administrative expense
270,000
Net operating income
150,000
Income taxes
45,000
Net income
$105,000
The company declared and paid a cash dividend of $54,000 during the year. It did not
purchase or dispose of any property, plant, and equipment. It did not issue any bonds or
repurchase any of its own common stock. The following questions pertain to the
company’s statement of cash flows.
12–207
The net cash provided by (used in) investing activities last year was:
12–208
91.
Walmouth Corporation’s comparative balance sheet and income statement for last year
appear below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Cash
$40,000
$32,000
Accounts receivable
89,000
79,000
Inventory
48,000
55,000
Prepaid expenses
8,000
11,000
Long-term investments
250,000
210,000
Property, plant and equipment
550,000
550,000
Less accumulated depreciation
264,000
239,000
Total assets
$721,000
$698,000
Accounts payable
$58,000
$46,000
Accrued liabilities
15,000
19,000
Income taxes payable
55,000
41,000
Bonds payable
100,000
160,000
Common stock
150,000
140,000
Retained earnings
343,000
292,000
Total liabilities and stockholders’ equity
$721,000
$698,000
Income Statement
Sales
$870,000
Cost of goods sold
450,000
Gross margin
420,000
Selling and administrative expense
270,000
Net operating income
150,000
Income taxes
45,000
Net income
$105,000
The company declared and paid a cash dividend of $54,000 during the year. It did not
purchase or dispose of any property, plant, and equipment. It did not issue any bonds 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 last year was:
12–209
12–210
92.
Stone Retail Corporation’s most recent comparative Balance Sheet is as follows:
Assets
Ending
Beginning
Cash
$51,000
$64,000
Accounts receivable
83,000
41,000
Inventory
96,000
87,000
Property, plant, and
equipment
120,000
120,000
Less accumulated
depreciation
65,000
50,000
Total assets
$285,000
$262,000
Liabilities and Stockholders’
Equity
Accounts payable
$12,000
$38,000
Income taxes payable
1,000
3,000
Bonds payable
30,000
5,000
Common stock
100,000
80,000
Retained earnings
142,000
136,000
Total liabilities and
stockholders’ equity
$285,000
$262,000
Operating activities:
Net income
Adjustments to convert net income to a cash basis:
Stone’s net income was $46,000. No equipment was sold or purchased. Cash dividends of
$40,000 were declared and paid. Stone uses the indirect method to prepare its statement
of cash flows.
What is Stone’s net cash provided (used) by operating activities?
12–211
12–212
93.
Stone Retail Corporation’s most recent comparative Balance Sheet is as follows:
Assets
Ending
Beginning
Cash
$51,000
$64,000
Accounts receivable
83,000
41,000
Inventory
96,000
87,000
Property, plant, and
equipment
120,000
120,000
Less accumulated
depreciation
65,000
50,000
Total assets
$285,000
$262,000
Liabilities and Stockholders’
Equity
Accounts payable
$12,000
$38,000
Income taxes payable
1,000
3,000
Bonds payable
30,000
5,000
Common stock
100,000
80,000
Retained earnings
142,000
136,000
Total liabilities and
stockholders’ equity
$285,000
$262,000
Stone’s net income was $46,000. No equipment was sold or purchased. Cash dividends of
$40,000 were declared and paid. Stone uses the indirect method to prepare its statement
of cash flows.
What is Stone’s net cash provided by (used in) investing activities?
12–213
12–214
94.
Stone Retail Corporation’s most recent comparative Balance Sheet is as follows:
Assets
Ending
Beginning
Cash
$51,000
$64,000
Accounts receivable
83,000
41,000
Inventory
96,000
87,000
Property, plant, and
equipment
120,000
120,000
Less accumulated
depreciation
65,000
50,000
Total assets
$285,000
$262,000
Liabilities and Stockholders’
Equity
Accounts payable
$12,000
$38,000
Income taxes payable
1,000
3,000
Bonds payable
30,000
5,000
Common stock
100,000
80,000
Retained earnings
142,000
136,000
Total liabilities and
stockholders’ equity
$285,000
$262,000
Financing activities:
$5,000)
(40,000)
Stone’s net income was $46,000. No equipment was sold or purchased. Cash dividends of
$40,000 were declared and paid. Stone uses the indirect method to prepare its statement
of cash flows.
What is Stone’s net cash provided by (used in) financing activities?
12–215
12–216
95.
Krech Corporation’s comparative balance sheet appears below:
Ending Balance
Beginning Balance
Assets:
Current assets:
Cash and cash equivalents
$31,000
$28,000
Accounts receivable
18,000
20,000
Inventory
58,000
56,000
Prepaid expenses
12,000
10,000
Total current assets
119,000
114,000
Property, plant, and equipment
374,000
354,000
Less accumulated depreciation
190,000
165,000
Net property, plant, and equipment
184,000
189,000
Total assets
$303,000
$303,000
Liabilities and Stockholders’ Equity:
Current liabilities:
Accounts payable
$13,000
$9,000
Accrued liabilities
52,000
53,000
Income taxes payable
67,000
69,000
Total current liabilities
132,000
131,000
Bonds payable
76,000
73,000
Total liabilities
208,000
204,000
Stockholders’ equity:
Common stock
28,000
26,000
Retained earnings
67,000
73,000
Total stockholders’ equity
95,000
99,000
Total liabilities and stockholders’ equity
$303,000
$303,000
The company’s net income (loss) for the year was ($3,000) and its cash dividends were
$3,000. It did not sell or retire any property, plant, and equipment during the year. The
company uses the indirect method to determine the net cash provided by operating
activities.
Which of the following is correct regarding the operating activities section of the
statement of cash flows?
12–217
12–218
96.
Krech Corporation’s comparative balance sheet appears below:
Ending Balance
Beginning Balance
Assets:
Current assets:
Cash and cash equivalents
$31,000
$28,000
Accounts receivable
18,000
20,000
Inventory
58,000
56,000
Prepaid expenses
12,000
10,000
Total current assets
119,000
114,000
Property, plant, and equipment
374,000
354,000
Less accumulated depreciation
190,000
165,000
Net property, plant, and equipment
184,000
189,000
Total assets
$303,000
$303,000
Liabilities and Stockholders’ Equity:
Current liabilities:
Accounts payable
$13,000
$9,000
Accrued liabilities
52,000
53,000
Income taxes payable
67,000
69,000
Total current liabilities
132,000
131,000
Bonds payable
76,000
73,000
Total liabilities
208,000
204,000
Stockholders’ equity:
Common stock
28,000
26,000
Retained earnings
67,000
73,000
Total stockholders’ equity
95,000
99,000
Total liabilities and stockholders’ equity
$303,000
$303,000
The company’s net income (loss) for the year was ($3,000) and its cash dividends were
$3,000. It did not sell or retire any property, plant, and equipment during the year. The
company uses the indirect method to determine the net cash provided by operating
activities.
Which of the following is correct regarding the operating activities section of the
statement of cash flows?
12–219
12–220
97.
Krech Corporation’s comparative balance sheet appears below:
Ending Balance
Beginning Balance
Assets:
Current assets:
Cash and cash equivalents
$31,000
$28,000
Accounts receivable
18,000
20,000
Inventory
58,000
56,000
Prepaid expenses
12,000
10,000
Total current assets
119,000
114,000
Property, plant, and equipment
374,000
354,000
Less accumulated depreciation
190,000
165,000
Net property, plant, and equipment
184,000
189,000
Total assets
$303,000
$303,000
Liabilities and Stockholders’ Equity:
Current liabilities:
Accounts payable
$13,000
$9,000
Accrued liabilities
52,000
53,000
Income taxes payable
67,000
69,000
Total current liabilities
132,000
131,000
Bonds payable
76,000
73,000
Total liabilities
208,000
204,000
Stockholders’ equity:
Common stock
28,000
26,000
Retained earnings
67,000
73,000
Total stockholders’ equity
95,000
99,000
Total liabilities and stockholders’ equity
$303,000
$303,000
The company’s net income (loss) for the year was ($3,000) and its cash dividends were
$3,000. It did not sell or retire any property, plant, and equipment during the year. The
company uses the indirect method to determine the net cash provided by operating
activities.
Which of the following is correct regarding the operating activities section of the
statement of cash flows?
