During 2011, Groton sold some equipment for $17 that had cost $33 and on which t
ID: 2455736 • Letter: D
Question
During 2011, Groton sold some equipment for $17 that had cost $33 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $21 that had cost $13 when purchased several years ago. A cash dividend was paid during 2011 and the company repurchased $39 of its own stock. Groton did not retire any bonds during 2011.
Using the indirect method, determine the net cash provided by/used by operating activities for 2011. (Negative amount should be entered with a minus sign.)
Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2011. (Amounts to be deducted and negative amounts should be indicated with a minus sign.)
operating activities:
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Adjustments to covert net income to cash basis:
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Net Cash Provided By Operating Activities =______?
Investing Activities:
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Financing Activities:
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Cash Balance, Jan 1, 2011 ?
Cash Balance, January 31,2011 ?
Explanation / Answer
1. Cash flow from operating activities $
Net income 65
+ Non cash expenses
Depreciation 15
+ Non operating losses
Loss on sale of equipment 6
- Non operating gain
Gain on sale of investments -8
+ Decrease in current assets
Inventory 44
- Increase in current assets
Accounts receivable 89
prepaid expenses 2
+ Increase in current liabilities
Accounts payable 76
income tax payable 9
- Decrease in current liabilities
Accrued liabilities -10
Net cash provided by operatin activities= $288
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