Question
Ware Company declared and paid $89,000 in cash dividends during the year. The Companys comparative balance sheet and income statement for last year appear below.
Ware Company declared and paid $89,000 in cash dividends during the year. The Companys comparative balance sheet and income statement for last year appear below. No dispositions of plant and equipment occurred during the year.
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Statement of Financial Position |
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| Ending | Beginning | |
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| Balance | Balance | |
| Cash............................................................................................................................................ | $ 38,000 | $ 23,000 | |
| Accounts receivable................................................................................................................. | 31,000 | 39,000 | |
| Inventory.................................................................................................................................... | 26,000 | 38,000 | |
| Prepaid expenses....................................................................................................................... | 21,000 | 12,000 | |
| Long-term investments............................................................................................................ | 250,000 | 220,000 | |
| Plant and equipment................................................................................................................ | 410,000 | 360,000 | |
| Accumulated depreciation...................................................................................................... | (262,000) | (222,000) | |
| Total assets................................................................................................................................ | $514,000 | $470,000 | |
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| Accounts payable..................................................................................................................... | $ 75,000 | $ 53,000 | |
| Accrued liabilities...................................................................................................................... | 9,000 | 23,000 | |
| Taxes payable........................................................................................................................... | 40,000 | 38,000 | |
| Bonds payable.......................................................................................................................... | 100,000 | 130,000 | |
| Common stock.......................................................................................................................... | 80,000 | 60,000 | |
| Retained earnings..................................................................................................................... | 210,000 | 166,000 | |
| Total liabilities and owners equity........................................................................................ | $514,000 | $470,000 | |
| Income Statement |
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| Sales............................................................................................................................................ | $990,000 |
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| Less cost of goods sold............................................................................................................ | 510,000 |
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| Gross margin.............................................................................................................................. | 480,000 |
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| Less operating expenses.......................................................................................................... | 290,000 |
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| Net operating income............................................................................................................... | 190,000 |
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| Less income taxes..................................................................................................................... | 57,000 |
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| Net income................................................................................................................................. | $133,000 |
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The net cash provided by (used in) operating activities last year was::
Question 6 options:
$194,000 | |
$133,000 | |
$173,000 | |
$72,000 |
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