A comparative balance sheet and an income statement for Kars Company are given b

Question

A comparative balance sheet and an income statement for Kars Company are given below Kars Company Comparative Balance Sheet dolars in miltions) Ending Beginning Balance Balance Assets Current assets Cash and cash equivalents 3 45 Total ourrent assets 1,425 1,39 Property, plant, and equipment Less acoumulated depreciation 1,505 1,538 806 609 Net property. plant, and equipment 750869 Total assets 2,184 s 2.238 and Stockholders' equity Llabilities Current liabilities 272 $ 168 188 184 78 Accounts payable Accrued labilities Income taxes payable 89 547 45408 Total current liabilities 660 Bonds payable Total iabilies Stockholders' equity 992 1,068 Common stock Retained eamings 175 175 1,017 995 1,192 1,170 Total stockholders equity $2,184 $ 2,238 Total liabilities and stockholders' equity Kars Company Income Statement dollars in millions) $3,880 2,660 Cost of goods sold Gross margin Selling and administrative expenses 1,220 892 328 Net operating income Non operating ihems: Gain on sale of equipment 2

Explanation / Answer

Cash flow Statement: Cash flow from operating activities: Net income for the period: 206 Adjustment required for reconciliation Gain on sale of equipment -2 Depreciation (669-13-806) 150 Increasein Accounts receivable -58 Increase in Inventory -46 Increase in Accounts payable 106 Increase in Accrued liabilities 22 Increase in Income tax payable 11 Net cash provided from Operating activities 389 Cash flows from Investing activities: Sale of equipment 13 Purchase of equipment (1538-24-1565) -51 Net cash used in Investing activities -38 Cash flows from Financing activities: Repayment of bonds payable -215 Dividend paid -184 Net cash used in financing activities -399 Net decrease in cash -48 Beginning balance of cash 93 Ending balance of cash 45

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

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