MC Qu. 64 Illies Corporations comparative ... Illies Corporation\'s comparative
ID: 2576918 • Letter: M
Question
MC Qu. 64 Illies Corporations comparative ...
Illies Corporation's comparative balance sheet appears below:
Ending Balance
Beginning Balance
Assets:
Current assets:
Cash and cash equivalents
$40,000
$33,000
Accounts receivable
19,000
21,000
Inventory
67,000
69,000
Total current assets
126,000
123,000
Property, plant, and equipment
358,000
339,000
Less accumulated depreciation
156,000
132,000
Net property, plant, and equipment
202,000
207,000
Total assets
$328,000
$330,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$18,000
$19,000
Accrued liabilities
54,000
59,000
Income taxes payable
48,000
42,000
Total current liabilities
120,000
120,000
Bonds payable
82,000
86,000
Total liabilities
202,000
206,000
Stockholders’ equity:
Common stock
23,000
22,000
Retained earnings
103,000
102,000
Total stockholders’ equity
126,000
124,000
Total liabilities and stockholders’ equity
$328,000
$330,000
The company did not dispose of any property, plant, and equipment during the year. Its net income for the year was $5,000 and its cash dividends were $4,000. The company did not issue any bonds payable or purchase any of its own common stock during the year. Its net cash provided by operating activities and net cash used in financing activities are:
A) net cash provided by operating activities, $35,000; net cash used in financing activities,$7,000
B) net cash provided by operating activities, $33,000; net cash used in financing activities,$7,000
C) net cash provided by operating activities, $35,000; net cash used in financing activities,$1,000
D) net cash provided by operating activities, $33,000; net cash used in financing activities,$1,000
Ending Balance
Beginning Balance
Assets:
Current assets:
Cash and cash equivalents
$40,000
$33,000
Accounts receivable
19,000
21,000
Inventory
67,000
69,000
Total current assets
126,000
123,000
Property, plant, and equipment
358,000
339,000
Less accumulated depreciation
156,000
132,000
Net property, plant, and equipment
202,000
207,000
Total assets
$328,000
$330,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$18,000
$19,000
Accrued liabilities
54,000
59,000
Income taxes payable
48,000
42,000
Total current liabilities
120,000
120,000
Bonds payable
82,000
86,000
Total liabilities
202,000
206,000
Stockholders’ equity:
Common stock
23,000
22,000
Retained earnings
103,000
102,000
Total stockholders’ equity
126,000
124,000
Total liabilities and stockholders’ equity
$328,000
$330,000
Explanation / Answer
Answer will be:B) net cash provided by operating activities, $33,000; net cash used in financing activities,$7,000
Cash flows from operating activities Net Income $ 5,000 Adjustment to reconcile net income to: Depreciation expense $ 24,000 Decrease in accounts receivable $ 2,000 Decrease in inventory $ 2,000 Decrease in accounts payable $ (1,000) Decrease in accrued liabilities $ (5,000) Increase in income tax payable $ 6,000 $ 28,000 Net cash provided by operating activities $ 33,000Related Questions
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