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12-160
12-161
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50.
Harkey Corporation's balance sheet and income statement appear below:
Comparative Balance Sheet
Ending Balance
Beginning
Balance
Assets:
Cash and
cash
equivalents
$32
$35
Accounts
receivable
74
71
Inventory
41
42
Property,
plant and
equipment
443
370
Less
accumulated
depreciation
194
164
Total assets
$396
$354
Liabilities
and
stockholders'
equity:
Accounts
payable
$26
$28
Accrued
liabilities
28
25
Income
taxes
payable
40
36
Bonds
payable
120
170
Common
stock
83
80
Retained
earnings
99
15
12-163
Total
liabilities
and
stockholders'
equity
$396
$354
Income Statement
Sales
$923
Cost of goods
sold
604
Gross margin
319
Selling and
administrative
expense
169
Net operating
income
150
Gain on sale
of equipment
11
Income
before taxes
161
Income taxes
48
Net income
$113
Cash dividends were $29. The company sold equipment for $15 that was originally
purchased for $6 and that had accumulated depreciation of $2.
Required:
Using the direct method, determine the net cash provided by operating activities.
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51.
Maloney Corporation's balance sheet and income statement appear below:
Comparative Balance Sheet
Ending Balance
Beginning
Balance
Assets:
Cash and
cash
equivalents
$26
$22
Accounts
receivable
44
49
Inventory
38
40
Property,
plant and
equipment
646
500
Less
accumulated
depreciation
273
260
Total assets
$481
$351
Liabilities
and
stockholders'
equity:
Accounts
payable
$65
$64
Accrued
liabilities
22
25
Income
taxes
payable
33
35
Bonds
payable
72
70
Common
stock
73
70
Retained
earnings
216
87
12-167
Total
liabilities
and
stockholders'
equity
$481
$351
Income Statement
Sales
$1,059
Cost of goods
sold
698
Gross margin
361
Selling and
administrative
expense
117
Net operating
income
244
Income taxes
73
Net income
$171
Cash dividends were $42. The company did not dispose of any property, plant, and
equipment during the year.
Required:
Prepare the operating activities section of the statement of cash flows using the direct
method.
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52.
Carson Corporation's comparative balance sheet and income statement for last year
appear below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Cash
$20,000
$15,000
Accounts receivable
27,000
25,000
Inventory
32,000
35,000
Prepaid expenses
8,000
5,000
Long-term investments
36,000
38,000
Property, plant and equipment
108,000
92,000
Less accumulated depreciation
49,000
30,000
Total assets
$182,000
$180,000
Accounts payable
$30,000
$38,000
Income taxes payable
17,000
35,000
Bonds payable
40,000
32,000
Common stock
45,000
40,000
Retained earnings
50,000
35,000
Total liabilities and stockholders'
equity
$182,000
$180,000
Income Statement
Sales
$200,000
Cost of goods sold
100,000
Gross margin
100,000
Selling and administrative expense
52,000
Net operating income
48,000
Gain on sale of investments
2,000
Income before taxes
50,000
Income taxes
20,000
12-171
Net income
$30,000
Carson did not dispose of any property, plant, and equipment during the year. It
constructs its statement of cash flows using the direct method.
Required:
Using the direct method, prepare in good form the operating activities section of the
statement of cash flows.
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53.
The changes in each balance sheet account for Carver Corporation during the year just
completed are as follows:
Increase
Decrease
Cash
$3,000
Accounts
receivable
$5,000
Inventory
$6,000
Prepaid
expenses
$3,000
Long-term
investments
$17,000
Property,
plant and
equipment
$11,000
Accumulated
depreciation
$9,000
Accounts
payable
$8,000
Accrued
liabilities
$5,000
Bonds
payable
$12,000
Common
stock
$3,000
Retained
earnings
$2,000
Carver Corporation's income statement for the year just ended shows the following:
Sales
$350,000
Cost of goods sold
190,000
