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3) MC Qu. 104 The most recent balance sheet ... The most recent balance sheet an

ID: 2576911 • Letter: 3

Question

3) MC Qu. 104 The most recent balance sheet ...

The most recent balance sheet and income statement of Penaloza Corporation appear below:

Comparative Balance Sheet

Ending Balance

Beginning Balance

Assets:

Cash and cash equivalents

$47

$39

Accounts receivable

49

55

Inventory

36

39

Property, plant and equipment

474

370

Less accumulated depreciation

250

218

Total assets

$356

$285

Liabilities and stockholders’ equity:

Accounts payable

$36

$35

Accrued liabilities

27

25

Income taxes payable

36

44

Bonds payable

88

80

Common stock

45

40

Retained earnings

124

  61

Total liabilities and equity

$356

$285

Income Statement

Sales

$773

Cost of goods sold

468

Gross margin

305

Selling and administrative expense

189

Net operating income

116

Income taxes

  35

Net income

$81


The company paid a cash dividend of $18. It did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.

The net cash provided by (used in) investing activities for the year was:

A)$104

B)($72)

C)($104)

D)$72

Comparative Balance Sheet

Ending Balance

Beginning Balance

Assets:

Cash and cash equivalents

$47

$39

Accounts receivable

49

55

Inventory

36

39

Property, plant and equipment

474

370

Less accumulated depreciation

250

218

Total assets

$356

$285

Liabilities and stockholders’ equity:

Accounts payable

$36

$35

Accrued liabilities

27

25

Income taxes payable

36

44

Bonds payable

88

80

Common stock

45

40

Retained earnings

124

  61

Total liabilities and equity

$356

$285

Explanation / Answer

here related to investing activitied is property, plant and equipment only.

Cash provided by investing activities = Property, plant and equipment at begining - Property, plant and equipment at the end

Cash provided by investing activities = $370-$474

Cash provided by investing activities = ($104)

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