Question
Magnolia Inc.s balance sheet and income statement are as follows: B ala n c e Sheet January 1 December 31 Assets: Cash $ 22 $
Magnolia Inc.s balance sheet and income statement are as follows:
Balance Sheet | January 1 | December 31 |
Assets: |
|
|
Cash | $ 22 | $ 23 |
Accounts receivable | 40 | 39 |
Inventory | 44 | 43 |
Property, plant, & equipment | 500 | 587 |
Less accumulated depreciation | (347) | (359) |
Total | $259 | $333 |
Liabilities and stockholders equity: |
|
|
Accounts payable | $ 26 | $ 30 |
Accrued liabilities | 18 | 15 |
Income taxes payable | 40 | 39 |
Bonds payable | 120 | 109 |
Common stock | 50 | 51 |
Retained earnings | 5 | 89 |
Total | $259 | $333 |
Income Statement | |
Sales | $ 972 |
Cost of goods sold | (620) |
Gross margin | 352 |
S&A expenses | (200) |
Operating income | 152 |
Gain on sale of equipment | 14 |
Income before taxes | 166 |
Income taxes | (50) |
Net income | $ 116 |
Magnolia sold equipment for $20 that was originally purchased for $7 and that had accumulated depreciation of $1. Magnolia paid a cash dividend and did not issue any bonds payable or repurchase any of its own common stock. Magnolia uses the indirect method to prepare its statement of cash flows. What is Magnolias net cash provided by (used in) operating activities?
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