Question
Krech Corporation's comparative balance sheet appears below: Comparative Balance SheetEnding BalanceBeginning BalanceAssets:Current assets:Cash and cash equivalents$52,000$35,800Accounts receivable28,50041,000Inventory100,00087,500Prepaid expenses16,20012,100Total current assets196,700176,400Property, plant, and equipment626,000606,000Less accumulated depreciation313,000272,700Net
Krech Corporation's comparative balance sheet appears below:
Comparative Balance SheetEnding BalanceBeginning BalanceAssets:Current assets:Cash and cash equivalents$52,000$35,800Accounts receivable28,50041,000Inventory100,00087,500Prepaid expenses16,20012,100Total current assets196,700176,400Property, plant, and equipment626,000606,000Less accumulated depreciation313,000272,700Net property, plant, and equipment313,000333,300Total assets$509,700$509,700Liabilities and stockholders' equity:Current liabilities:Accounts payable$46,700$30,000Accrued liabilities73,000105,500Income taxes payable119,500121,500Total current liabilities239,200257,000Bonds payable139,000115,000Total liabilities378,200372,000Stockholders' equity:Common stock70,00047,000Retained earnings61,50090,700Total stockholders' equity131,500137,700Total liabilities and stockholders' equity$509,700$509,700
The company's net income (loss) for the year was $(14,600) and its cash dividends were $14,600. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities.
The company's net cash provided by (used in) operating activities is
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