During 2011, Groton sold some equipment for $19 that had cost $31 and on which t

ID: 2494024 • Letter: D

Question

During 2011, Groton sold some equipment for $19 that had cost $31 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $13 that had cost $7 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 in) 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.)

A comparative balance sheet and income statement for Groton Company follow:

Explanation / Answer

Using the indirect method, determine the net cash provided by (used in) operating activities for 2011.

Net cash from operating Activities = $127

Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2011

for the year ended 12/31/11

Groton company Statement of Cash Flows

for the year ended 12/31/11

Cash flows from operating activities Net income $65 Adjustments for: Depreciation 24 Increase in Accounts receivable -77 Decrease in inventories 38 Increase in prepaid exepnses -2 Increase in Accounts APyable 76 Decerase in accrued liabilities -10 Increase in Income taxes payables 9 Gain on sale of investments 6 Loss on sale of equipments -2 $62 Net Cash from Operating Activities $127 Net cash from Investing activities Additions to Plant and equipment -79 Proceeds from sale Long-term investments 7 Proceeds from sale of equipment 19 Net cash used in investing activities ($53) Net cash from financing activities Issuance of bonds 26 Decrease in common stock -39 Cash dividends -39 Net cash used in financing activities ($52) Net increase in cash $22 Cash balance as of Jan 1 2011 1 Cash balance as of Dec 31 2011 $23

Navigate

During 2011, Groton sold some equipment for $17 that had cost $33 and on which t

During 2011, Groton sold some equipment for $26 that had cost $41 and on which t

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

During 2011, Groton sold some equipment for $19 that had cost $31 and on which t

Question

Explanation / Answer

Related Questions

Navigate