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