MC Qu. 64 Illies Corporations comparative ...

Illies Corporation's comparative balance sheet appears below:

	Ending Balance	Beginning Balance
Assets:
Current assets:
Cash and cash equivalents	$40,000	$33,000
Accounts receivable	19,000	21,000
Inventory	67,000	69,000
Total current assets	126,000	123,000
Property, plant, and equipment	358,000	339,000
Less accumulated depreciation	156,000	132,000
Net property, plant, and equipment	202,000	207,000
Total assets	$328,000	$330,000
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable	$18,000	$19,000
Accrued liabilities	54,000	59,000
Income taxes payable	48,000	42,000
Total current liabilities	120,000	120,000
Bonds payable	82,000	86,000
Total liabilities	202,000	206,000
Stockholders equity:
Common stock	23,000	22,000
Retained earnings	103,000	102,000
Total stockholders equity	126,000	124,000
Total liabilities and stockholders equity	$328,000	$330,000

The company did not dispose of any property, plant, and equipment during the year. Its net income for the year was $5,000 and its cash dividends were $4,000. The company did not issue any bonds payable or purchase any of its own common stock during the year. Its net cash provided by operating activities and net cash used in financing activities are:

A) net cash provided by operating activities, $35,000; net cash used in financing activities,$7,000

B) net cash provided by operating activities, $33,000; net cash used in financing activities,$7,000

C) net cash provided by operating activities, $35,000; net cash used in financing activities,$1,000

D) net cash provided by operating activities, $33,000; net cash used in financing activities,$1,000