Question
Dauber Corporation's comparative balance sheet and income statement for last year appear below: Comparative Balance Sheet Ending Balance Beginning Balance Cash and cash equivalents $
- Dauber Corporation's comparative balance sheet and income statement for last year appear below:
Comparative Balance Sheet |
| |||||||
| Ending Balance | Beginning Balance |
| |||||
Cash and cash equivalents | $ | 64,000 |
| $ | 39,000 |
| ||
Accounts receivable |
| 57,000 |
|
| 44,000 |
| ||
Inventory |
| 58,000 |
|
| 70,000 |
| ||
Prepaid expenses |
| 18,000 |
|
| 10,000 |
| ||
Long-term investments |
| 290,000 |
|
| 230,000 |
| ||
Property, plant, and equipment |
| 520,000 |
|
| 520,000 |
| ||
Less accumulated depreciation |
| 390,000 |
|
| 358,000 |
| ||
Total assets | $ | 617,000 |
| $ | 555,000 |
| ||
|
|
|
|
|
|
| ||
Accounts payable | $ | 14,000 |
| $ | 38,000 |
| ||
Accrued liabilities |
| 35,000 |
|
| 17,000 |
| ||
Income taxes payable |
| 69,000 |
|
| 40,000 |
| ||
Bonds payable |
| 160,000 |
|
| 180,000 |
| ||
Common stock |
| 140,000 |
|
| 110,000 |
| ||
Retained earnings |
| 199,000 |
|
| 170,000 |
| ||
Total liabilities and stockholders' equity | $ | 617,000 |
| $ | 555,000 |
| ||
Income Statement |
| ||
Sales | $ | 580,000 | |
Cost of goods sold |
| 250,000 | |
Gross margin |
| 330,000 | |
Selling and administrative expense |
| 210,000 | |
Net operating income |
| 120,000 | |
Income taxes |
| 36,000 | |
Net income | $ | 84,000 | |
The company declared and paid a cash dividend of $55,000 during the year. It did not sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock.
Required:
a. Construct in good form the operating activities section of the company's statement of cash flows for the year.
b. Construct in good form the investing activities section of the company's statement of cash flows for the year.
c. Construct in good form the financing activities section of the company's statement of cash flows for the year.
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