Smigel Corporation\'s balance sheet and income statement appear below: Smigel Co
ID: 2372625 • Letter: S
Question
Smigel Corporation's balance sheet and income statement appear below:
Smigel Corporation's
Balance Sheet
Ending Balance
Beginning
Balance
Assets
Cash and cash equivalents
$
24
$
25
Accounts receivable
58
51
Inventory
61
62
Property, plant and equipment
452
430
Less accumulated depreciation
218
185
Total assets
$
377
$
383
Liabilities and stockholders' equity:
Accounts payable
$
63
$
56
Accrued liabilities
27
23
Income taxes payable
39
35
Bonds payable
59
60
Common stock
53
50
Retained earnings
136
159
Total liabilities and stockholders' equity
$
377
$
383
Smigel Corporation's
Income Statement
Sales
$
317
Cost of goods sold
210
Gross margin
107
Selling and administrative expense
144
Net operating income
(37)
Gain on sale of equipment
15
Income before taxes
(22)
Income taxes
0
Net income
$
(22)
Cash dividends were $1. The company sold equipment for $15 that was originally purchased for $5 and that had accumulated depreciation of $5.
Required:
Determine the net cash provided by (used in) operating activities for the year using the indirect method
Smigel Corporation's balance sheet and income statement appear below:
Explanation / Answer
Please find the answer as follows:
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Particulars Item Net Income -22 Add Depreciation Charges (218 - 185 + 5) 38 Decrease in Inventory (62-61) 1 Increase in Accounts Payable (63-56) 7 Increase in Accrued Liabilities (27-23) 4 Increase in Income Taxes Payable (39-35) 4 Less Increase in Accounts Receivables (58-51) -7 Gain on Sale of Equipment -15 Net Cash Flow Provided by Operating Activities 10Related Questions
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