Hello, I am having some trouble figuring out this question:
A comparative balance sheet and income statement for Groton Company follow: Groton Company Comparative Balance Sheet December 31, 2011 and 2010 2011 2010 Assets Cash $ 5 $ 15 Accounts receivable 322 237 Inventory 166 208 Prepaid expenses 16 14 Total current assets 509 475 Property, plant, and equipment 517 438 Less accumulated depreciation (89) (75) Net property, plant, and equipment 428 363 Longterm investments 29 40 Total assets $ 966 $ 878 Liabilities and Stockholders' equity Accounts payable $ 305 $ 229 Accrued liabilities 74 84 Income taxes payable 80 71 Total current liabilities 459 384 Bonds payable 206 180 Total liabilities 665 564 Common stock 171 210 Retained earnings 130 104 Total stockholders' equity 301 314 Total liabilities and stockholders' equity $ 966 $ 878 Groton Company Income Statement For the Year Ended December 31, 2011 Sales $ 764 Cost of goods sold 450 Gross margin 314 Selling and administrative expenses 220 Net operating income 94 Non operating items: Gain on sale of investments $ 5 Loss on sale of equipment (3) 2 Income before taxes 96 Income taxes 31 Net income $ 65 During 2011, Groton sold some equipment for $18 that had cost $31 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $16 that had cost $11 when purchased several years ago. A cash dividend was paid during 2011 and the company repurchased $39 of its own stock. Groton did not retire any bonds during 2011. Required: 1. Using the indirect method, determine the net cash provided bylused by operating activities for 2011. (Negative amount should be entered with a minus sign.) -::I 2. Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash ows for 2011. (Amounts to be deducted and negative amounts should be indicated with a minus sign.) Adjustments to convert net income to cash basis: __ Investing activities: Financing activities: Cash balance, January 1, 2011 _- Cash balance, December 31, 2011 _m