2.

Last year Lawn Corporation reported sales of $110,000 on its income statement. During the year, accounts receivable increased by $12,000 and accounts payable increased by $17,000. The company uses the direct method to determine the net cash provided by (used in) operating activities on the statement of cash flows. The sales revenue adjusted to a cash basis for the year would be: The changes in each balance sheet account for Carver Corporation during the year just completed are as follows: Increase Decrease $ 3,180 $ 5,450 Cash and cash equivalents Accounts receivable $ 6,240 Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation Accounts payable 3,090 $18,530 $11,440 $9,540 $ 8,320 $ 5,150 Accrued liabilities Bonds Payable $13,080 $ 3,300 $12,960 Common Stock Retained Earnings Carver Corporation's income statement for the year just ended shows the following: Income Statement. Sales $385,000 201,400 183,600 Cost of goods sold Gross margin Selling and administrative expense 170,640 $ 12,960 Net income 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.) a. Adjusted sales b. Adjusted cost of goods sold c. Adjusted selling and administrative expenses d. Net cash provided by (used in) operating activities e.Net cash provided by (used in) investing activities f.Net cash provided by (used in) financing activities