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ACC - Cavett Company's

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Question;Cavett Company's comparative balance sheet and income statement for last year appear below:Comparative Balance SheetEnding Balance Beginning BalanceAssets:Cash $ 45,000 $ 30,000Accounts receivable 38,000 40,000Inventory 67,000 60,000Long-term investments 162,000 200,000Property, plant and equipment 178,000 150,000Less accumulated depreciation 52,000 50,000Total assets $ 438,000 $ 430,000Liabilities and stockholders' equity:Accounts payable $ 36,000 $ 40,000Accrued liabilities 24,000 30,000Income taxes payable 15,000 20,000Bonds payable 20,000 30,000Common stock 295,000 270,000Retained earnings 48,000 40,000Total liabilities and stockholders' equity $ 438,000 $ 430,000Income StatementSales $ 250,000Cost of goods sold 100,000Gross margin 150,000Selling and administrative expenses 90,000Net operating income 60,000Loss on sale of investment 5,000Income before taxes 55,000Income taxes 22,000Net income $ 33,000The 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 activitiesFinancing activities:Net cash financing activities

 

Paper#39057 | Written in 18-Jul-2015

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