Question
1. The following events occurred last year at Dorder Corporation: Purchase of plant and equipment $53,900 Sale of long-term investment $32,100 Dividends received on long-term
1. The following events occurred last year at Dorder Corporation: |
Purchase of plant and equipment | $53,900 |
Sale of long-term investment | $32,100 |
Dividends received on long-term investments | $14,000 |
Paid off bonds payable | $34,000 |
Depreciation expense | $14,000 |
Based on the above information, the cash provided (used) by investing activities for the year on the statement of cash flows would net to: |
$(21,800)
$(34,000)
$(55,800)
$(14,000)
3.
McCorey Corporation recorded the following events last year: |
Repurchase by the company of its own common stock | $45,000 |
Sale of long-term investment | $64,000 |
Interest paid to lenders | $17,500 |
Dividends paid to the company's shareholders | $74,000 |
Collection by McCorey of a loan made to another company | $50,000 |
Payment of taxes to governmental bodies | $27,500 |
On the statement of cash flows, some of these events are classified as operating activities, some are classified as investing activities, and some are classified as financing activities. |
Based solely on the information above, the net cash provided by (used in) investing activities on the statement of cash flows would be: |
$(22,500)
$(6,500)
$40,000
$114,000
4. Financial statements of Rukavina Corporation follow: |
Rukavina Corporation Comparative Balance Sheet | ||
Ending Balance | Beginning Balance | |
Assets: | ||
Cash and cash equivalents | $23 | $20 |
Accounts receivable | 80 | 71 |
Inventory | 33 | 30 |
Property, plant and equipment | 513 | 470 |
Less: accumulated depreciation | 324 | 298 |
Total assets | $325 | $293 |
Liabilities and stockholders' equity: | ||
Accounts payable | $39 | $50 |
Bonds payable | 90 | 100 |
Common stock | 75 | 71 |
Retained earnings | 121 | 72 |
Total liabilities and stockholders' equity | $325 | $293 |
Income Statement | |
Sales | $700 |
Cost of goods sold | 455 |
Gross margin | 245 |
Selling and administrative expenses | 154 |
Net operating income | 91 |
Income taxes | 32 |
Net income | $59 |
Cash dividends were $10. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable 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) investing activities for the year was: |
$(10)
$(43)
$4
$(10)
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