Question
Charlotte Company's net income last year was $92,300. Changes in the company's balance sheet accounts for the year appear below: Asset and Contra-Asset Accounts: Increases
Charlotte Company's net income last year was $92,300. Changes in the company's balance sheet accounts for the year appear below: |
Asset and Contra-Asset Accounts: | Increases (Decreases) | |||
Cash | $ | (12,800) | ||
Accounts receivable | $ | 16,250 | ||
Inventory | $ | 21,300 | ||
Prepaid expenses | $ | (8,150) | ||
Long-term investments | $ | 30,450 | ||
Property, plant and equipment | $ | 60,450 | ||
Accumulated depreciation | $ | 36,450 | ||
Liability and Equity Accounts: | ||||
Accounts payable | $ | (21,300) | ||
Accrued liabilities | $ | 14,250 | ||
Income taxes payable | $ | 42,600 | ||
Bonds payable | $ | (50,700) | ||
Common stock | $ | 20,300 | ||
Retained earnings | $ | 65,900 | ||
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. |
Required: |
a. | Construct in good form the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) (Negative amounts and amounts to be deducted should be indicated by a minus sign.) |
(Click to select)Net lossNet income | $ | |||
Adjustments: | ||||
(Click to select)Purchase of long-term investmentsIncrease in accrued liabilitiesIncrease in inventoryDecrease in prepaid expensesIncrease in income taxes payableDecrease in accounts receivableDepreciationIncrease in accounts receivableDecrease in accounts payable | $ | |||
(Click to select)Decrease in accounts receivableIncrease in accounts receivableIncrease in accrued liabilitiesPurchase of long-term investmentsDecrease in accounts payableDepreciationIncrease in inventoryDecrease in prepaid expensesIncrease in income taxes payable | ||||
(Click to select)Decrease in accounts payableIncrease in income taxes payableIncrease in accounts receivableIncrease in accrued liabilitiesDecrease in accounts receivablePurchase of long-term investmentsDecrease in prepaid expensesDepreciationIncrease in inventory | ||||
(Click to select)Decrease in accounts receivableIncrease in accrued liabilitiesPurchase of long-term investmentsDecrease in prepaid expensesDecrease in accounts payableIncrease in inventoryIncrease in accounts receivableDepreciationIncrease in income taxes payable | ||||
(Click to select)Purchase of long-term investmentsDecrease in prepaid expensesIncrease in accounts receivableIncrease in accrued liabilitiesDecrease in accounts receivableIncrease in income taxes payableDepreciationDecrease in accounts payableIncrease in inventory | ||||
(Click to select)Increase in accrued liabilitiesDecrease in accounts payableIncrease in accounts receivableDepreciationDecrease in prepaid expensesIncrease in inventoryDecrease in accounts receivableIncrease in income taxes payablePurchase of long-term investments | ||||
(Click to select)Purchase of long-term investmentsIncrease in accounts receivableIncrease in inventoryDecrease in accounts receivableIncrease in accrued liabilitiesDecrease in prepaid expensesDecrease in accounts payableIncrease in income taxes payableDepreciation | ||||
Net cash (Click to select)used inprovided by operating activities | $ | |||
b. | Construct in good form the investing activities section of the company's statement of cash flows for the year. (Negative amounts and amounts to be deducted should be indicated by a minus sign.) |
(Click to select)Purchase of short-term investmentsIssuance of common stockRetirement of bonds payablePurchase of property, plant & equipmentPurchase of long-term investments | $ | |
(Click to select)Purchase of short-term investmentsPurchase of property, plant & equipmentIssuance of common stockPurchase of long-term investmentsRetirement of bonds payable | ||
Net cash (Click to select)used inprovided by investing activities | $ | |
c. | Construct in good form the financing activities section of the company's statement of cash flows for the year. (Negative amounts and amounts to be deducted should be indicated by a minus sign.) |
(Click to select)Cash dividendsPurchase of long-term investmentsIssuance of common stockRetirement of bonds payablePurchase of property, plant & equipment | $ | |
(Click to select)Cash dividendsPurchase of long-term investmentsRetirement of bonds payableIssuance of common stockPurchase of property, plant & equipment | ||
(Click to select)Purchase of property, plant & equipmentIssuance of common stockRetirement of bonds payableCash dividendsPurchase of long-term investments | ||
Net cash (Click to select)used inprovided by financing activities | $ | |
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