Birchett Corporation\'s most recent balance sheet appears below: The company\'s

Question

Birchett Corporation's most recent balance sheet appears below:
  

The company's net income for the year was $91 and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $22. The net cash provided by (used in) operating activities for the year was:

$5

$130

$86

$96

Comparative Balance Sheet Ending Balance Beginning Balance Assets Current assets:    Cash and cash equivalents $27 $26    Accounts receivable 65 59    Inventory   49   55 Total current assets 141 140 Property, plant, and equipment 533 490    Less accumulated depreciation 234 231 Net property, plant, and equipment 299 259 Total assets $440 $399 Liabilities and stockholders' equity Current liabilities:    Accounts payable $28 $26 Total current liabilities 28 26 Bonds payable 169 200 Total liabilities 197 226 Stockholders’ equity:    Common stock 71 70    Retained earnings 172 103 Total stockholders’ equity 243 173 Total liabilities and stockholders' equity $440 $399

Explanation / Answer

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

so answer is d) $96

Cash flow from operating activities Net income 91 Adjustment to reconcile net income Increase account receivable (6) Decrease inventory 6 Increase account payable 2 Depreciation 3 Net cash flow from operating activities 96

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