Brian Company provides the following account balances as of 12.31.09 and 12.31.1

Question

Brian Company provides the following account balances as of 12.31.09 and 12.31.10:
12.31.09 12.31.10
Cash $ 80 $ 90
Accounts Receivable 50 40
Merchandise 80 90
Equipment 700 900
Accumulated Depreciation 400 500
Accounts Payable 50 40
Common Stock 60 100
Retained Earnings 180 280

During 2010, Brian reported sales of $500, cost of goods sold of $200, and selling expenses of $100. No equipment was sold and no stock redeemed during the year.
What amount of cash was provided by or used for operations during the year? $__________
What amount of cash was provided by or used or used for investing activities during the year? $_____
What amount of cash was provided by or used for financing activities during the year? $__________
What amount of cash was paid for dividends during the year? $__________

Explanation / Answer

Operating Activities: Depreciation +100,000 A/R +10,000 A/P -10,000 Overall Change: 100,000 provided by operating activities Investing Activities: Equipment -200,000 Overall Change: 200,000 used by Investing activities Financing Activities: Issuance of Common Stock +40,000 Dividends paid -100,000 Overall Change: 60,000 used by Financing Activities 100,000 paid for dividends during the year, this is because net income is calculated to be 200,000 (500,000-200,000-100,000) and retained earnings only increased by 100,000 so there must have been a dividend of 100,000.

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.