Description of this paper

The following changes took place last year in Herald Company's balance sheet accounts:




The following changes took place last year in Herald Company's balance sheet accounts;ebit Balance Accounts;Credit Balance Accounts;Cash;$;20;I;Accumulated Depreciation;$;40;I;Accounts Receivable;$;10;D;Accounts Payable;$;20;I;Inventory;$;30;I;Accrued Liabilities;$;10;D;Prepaid Expenses;$;5;D;Taxes Payable;$;10;I;Long-Term Investments;$;30;D;Bonds Payable;$;20;D;Plant and Equipment;$;150;I;Deferred Income Taxes;$;5;I;Land;$;30;D;Common Stock;$;40;I;Retained Earnings;$;40;I;D = Decrease, I = Increase;Long-term investments that had cost the company $50 were sold during the year for $45, and land that had cost $30 was sold for $70. In addition, the company declared and paid $35 in cash dividends during the year. No sales or retirements of plant and equipment took place during the year.;The company's income statement for the year follows;Sales;$;600;Cost of goods sold;250;Gross margin;350;Selling and administrative expenses;280;Net operating income;70;Nonoperating items;Loss on sale of investments;$;(5;Gain on sale of land;40;35;Income before taxes;105;Income taxes;30;Net income;$;75;The company's beginning cash balance was $100, and its ending balance was $120.;Requirement 1;Use the indirect method to determine the net cash provided by operating activities for the year.;Net cash provided by operating activities;$


Paper#24932 | Written in 18-Jul-2015

Price : $37