Question
Burns Corporation's net income last year was $98,000. Changes in the company's balance sheet accounts for the year appear below: Increases (Decreases) Asset and Contra-Asset
| Burns Corporation's net income last year was $98,000. Changes in the company's balance sheet accounts for the year appear below: |
| Increases (Decreases) | ||
| Asset and Contra-Asset Accounts: | ||
| Cash | $ | 46,300 |
| Accounts receivable | $ | 36,000 |
| Inventory | $ | (43,000) |
| Prepaid expenses | $ | 10,200 |
| Long-term investments | $ | 54,000 |
| Property, plant and equipment | $ | 84,000 |
| Accumulated depreciation | $ | 60,000 |
| Liability and Equity Accounts: | ||
| Accounts payable | $ | (43,000) |
| Accrued liabilities | $ | 33,000 |
| Income taxes payable | $ | 63,000 |
| Bonds payable | $ | (74,000) |
| Common stock | $ | 71,000 |
| Retained earnings | $ | 77,500 |
|
| ||
| The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $20,500. |
| Required: | |
| a. | Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) (Amounts to be deducted should be indicated with a minus sign.) |
| b. | Prepare the investing activities section of the company's statement of cash flows for the year. (Amounts to be deducted should be indicated with a minus sign.) |
| c. | Prepare the financing activities section of the company's statement of cash flows for the year. (Amounts to be deducted should be indicated with a minus sign.) |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started