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Cavett Company's comparative balance sheet and inc...

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Cavett Company's comparative balance sheet and income statement for last year appear below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash $ 45,000 $ 30,000 Accounts receivable 38,000 40,000 Inventory 67,000 60,000 Long-term investments 162,000 200,000 Property, plant and equipment 178,000 150,000 Less accumulated depreciation 52,000 50,000 Total assets $ 438,000 $ 430,000 Liabilities and stockholders' equity: Accounts payable $ 36,000 $ 40,000 Accrued liabilities 24,000 30,000 Income taxes payable 15,000 20,000 Bonds payable 20,000 30,000 Common stock 295,000 270,000 Retained earnings 48,000 40,000 Total liabilities and stockholders' equity $ 438,000 $ 430,000 Income Statement Sales $ 250,000 Cost of goods sold 100,000 Gross margin 150,000 Selling and administrative expenses 90,000 Net operating income 60,000 Loss on sale of investment 5,000 Income before taxes 55,000 Income taxes 22,000 Net income $ 33,000 The following additional information is available for the year: * During the year, the company sold long-term investments with a cost of $38,000 when purchased for $33,000 in cash. * All sales were on credit. * The company paid a cash dividend of $25,000. * The company did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year. Required: a. Using the direct method, determine the net cash provided by operating activities for the year. (Omit the "$" sign in your response.) Net cash provided $ b. Using the indirect method, determine the net cash provided by operating activities for the year. (Omit the "$" sign in your response.) Net cash provided $ c. Using the net cash provided by operating activities figure from either part a or b, prepare a statement of cash flows for the year. (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.) Net cash provided by operating activities $ Investing activities: Net cash provided by investing activities Financing activities: Net cash financing activities $

 

Paper#10762 | Written in 18-Jul-2015

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