Question
Worldwide Corp.'s statement of financial position accounts as of December 31, 2019 and 2018 and information relating to 2019 activities are presented below. December 31,
Worldwide Corp.'s statement of financial position accounts as of December 31, 2019 and 2018 and information relating to 2019 activities are presented below.
| December 31, |
| 2019 | 2018 |
Assets |
|
|
Cash | $440,000 | $160,000 |
Short-term investments | 800,000 | |
Accounts receivable (net) | 1,130,000 | 1,230,000 |
Inventory | 1,210,000 | 1,050,000 |
Long-term investments | 400,000 | 600,000 |
Plant assets | 3,100,000 | 2,000,000 |
Accumulated depreciation | (700,000) | (900,000) |
Patent | 280,000 | 300,000 |
Total assets | $6,660,000 | $4,440,000 |
Liabilities and Equity |
|
|
Accounts payable | $1,620,000 | $1,330,000 |
Other accrued liabilities | 200,000 | 250,000 |
Notes payable (nontrade) | 560,000 | |
Common Stock-$10 par | 1,600,000 | 1,400,000 |
Additional paid-in capital | 800,000 | 500,000 |
Retained earnings | 1,880,000 | 960,000 |
Total liabilities and equity | $6,660,000 | $4,440,000 |
Information relating to 2019 activities: Net income for 2019 was $1,250,000. This amount includes net sales revenue of $4,500,000 and cost of goods sold of $2,100,000. Equipment costing $1,000,000 and having a carrying amount of $320,000 was sold in 2019 for $360,000. A long-term investment was sold in 2019 for $345,000. There were no other transactions affecting long-term investments in 2019. 20,000 ordinary shares were issued in 2019 for $25 a share. Short-term investments consist of treasury bills maturing on 9/30/20. Compute net cash provided by operating activities.
$1,745,000 | ||
$3,470,000 | ||
$1,450,000 | ||
$2,595,000 |
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