Question
129. The changes in each balance sheet account for Carver Corporation during the year just completed are as follows: Increase Decrease Cash and cash equivalents
129. The changes in each balance sheet account for Carver Corporation during the year just completed are as follows:
Increase | Decrease | |||||
Cash and cash equivalents | $ | 3,090 | ||||
Accounts receivable | $ | 5,400 | ||||
Inventory | $ | 6,420 | ||||
Prepaid expenses | $ | 3,240 | ||||
Long-term investments | $ | 18,020 | ||||
Property, plant, and equipment | $ | 11,880 | ||||
Accumulated depreciation | $ | 9,900 | ||||
Accounts payable | $ | 8,640 | ||||
Accrued liabilities | $ | 5,250 | ||||
Bonds Payable | $ | 12,240 | ||||
Common Stock | $ | 3,090 | ||||
Retained Earnings | $ | 1,810 | ||||
Carver Corporation's income statement for the year just ended shows the following:
Income Statement | ||
Sales | $ | 374,170 |
Cost of goods sold | 203,300 | |
Gross margin | 170,870 | |
Selling and administrative expense | 169,060 | |
Net income | $ | 1,810 |
The company did not dispose of any property, plant, and equipment, buy any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. Carver Corporation uses the direct method to construct its statement of cash flows.
Required:
a. Determine the sales adjusted to the cash basis.
b. Determine the cost of goods sold adjusted to the cash basis.
c. Determine the selling and administrative expenses adjusted to a cash basis.
d. Determine the net cash provided by (used in) operating activities. (Negative amounts should be indicated by a minus sign.)
e. Determine the net cash provided by (used in) investing activities. (Negative amounts should be indicated by a minus sign.)
f. Determine the net cash provided by (used in) financing activities. (Negative amounts should be indicated by a minus sign.)
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