Laux Company had the following Income Statement for 2018 and Balance sheets as of December 31, 2017
Question:
Laux Company had the following Income Statement for 2018 and Balance sheets as of December 31, 2017 and 2018.Determine the net cash provided by or used for operating activities for 2018, the cash provided by or used for investing activities, and the cash provided by or used for financing activities.
Laux Company
Income Statement
For the year ended December 31, 2018
Sales
$400,000
Cost of goods sold
194,000
Gross margin
206,000
Operating expenses
52,000
Income from operations
154,000
Gain on sale of equipment*
2,000
Income before taxes
156,000
Income tax expense
22,000
Net income
$134,000
Laux Company
Balance Sheet
December 31,2018
December 31,2017
Assets
Cash
146,300
43,200
Accounts receivable
75,200
73,200
Merchandise inventory
55,000
59,000
Property and equipment
320,000
310,000
Less: Accumulated depreciation
(100,000)
(120,000)
496,500
365,400
Accounts payable
51,000
44,700
Wages payable
2,000
2,200
Note payable, long-term
73,000
77,000
Contributed capital
100,200
90,100
Retained earnings
270,300
151,400
496,500
365,400
*Laux sold equipment for $7,000.It had an original cost of $35,000 and accumulated depreciation of $30,000.There was a gain of $2,000 recognized on the sale.Laux sold stock for $13,000 and paid dividends of $15,100.Show dividends as a financing activity (rather than an operating activity).
What was depreciation expense?
What were acquisitions?
I will evaluate the following answers based upon your answers (correct or incorrect) to the two previous questions.
Cash provided by (if positive) or cash used for (if negative) operating activities:
Cash provided by (if positive) or cash used for (if negative) investing activities:
Cash provided by (if positive) or cash used for (if negative) financing activities:
Show computations here:
Expert Answer:
