Question
Master Company's net income last year was $88,000, and cash dividends declared and paid to the company's stockholders were $60,000. Changes in selected balance
Master Company's net income last year was $88,000, and cash dividends declared and paid to the company's stockholders were $60,000. Changes in selected balance sheet accounts for the year are as follows: Increases (Decreases) Debit balances: Cash Accounts receivable Inventory $(4,000) (11,000) 6,000 Prepaid expenses 0 Long-term investments 50,000 Plant and equipment 35,000 Credit balances: Accumulated depreciation $ 62,000 Accounts payable Accrued liabilities Taxes payable Bonds payable Common stock Retained earnings 1,000 (5,000) 10,000 (60,000) 40,000 28,000 The net cash from operating activities last year was: $161,000. $181,000. $150,000. $88,000.
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