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Use the following information for question 15. The balance sheet data of Paxon Company at the end of 20X4 and 20x3 follow: 20X4 20X3 Cash $ 125,000 $ 175,000 Accounts receivable (net) 300,000 225,000 Merchandise inventory 350,000 225,000 Prepaid expenses 50,000 125,000 Buildings and equipment 450,000 375,000 Accumulated depreciationbuildings and equipment (90,000) (40,000) Land 450,000 200,000 Totals $1.635.000 $1.285.000 Accounts payable $ 340,000 $ 275,000 Accrued expenses 60,000 90,000 Notes payable-bank, long-term 200,000 Mortgage payable 150,000 Common stock, $10 par 1,045,000 795,000 Retained earnings (deficit) 40,000 (75,000) $1.635.000 $1.285.000 Land was acquired for $250,000 in exchange for common stock, par $250,000, during the year, all equipment purchased was for cash. Equipment costing $25,000 was sold for $10,000; book value of the equipment was $20,000 and the loss was reported as an ordinary item in net income. Cash dividends of $50,000 were charged to retained earnings and paid during the year, the transfer of net income to retained earnings was the only other entry in the Retained Earnings account. In the statement of cash flows for the year ended December 31, 20X4, for Paxon Company: 15 Calculate the net cash provided (used) by operating activities. |