The most recent balance sheet and income statement of Oldaker Corporation appear
ID: 2598540 • Letter: T
Question
The most recent balance sheet and income statement of Oldaker Corporation appear below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets
Cash and cash equivalents
$31
$29
Accounts receivable
73
79
Inventory
44
45
Property, plant, and equipment
728
590
Less accumulated depreciation
253
242
Total Assets
$623
$501
Liabilities and stockholders’ equity
Ending Balance
Beginning Balance
Accounts payable
$56
$63
Accrued liabilities
21
22
Income taxes payable
26
28
Bonds payable
121
110
Common stock
33
30
Retained earnings
366
248
Total liabilities and stockholders equity
623
501
Income Statement
Sales
$921
Cost of goods sold
575
Gross margin
346
Selling and administrative expense
117
Net operating income
229
Income taxes
69
Net income
$160
The company paid a cash dividend of $42 and 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 question pertains to the company's statement of cash flows.
The net cash provided by (used in) operating activities for the year was:
$168
$8
$152
$229
Ending Balance
Beginning Balance
Assets
Cash and cash equivalents
$31
$29
Accounts receivable
73
79
Inventory
44
45
Property, plant, and equipment
728
590
Less accumulated depreciation
253
242
Total Assets
$623
$501
Explanation / Answer
Net income 160 Depreciation expense 11 Decrease in Accounts receivable 6 Decrease in Inventory 1 Decrease in Accounts payable -7 Decrease in Accrued liabilities -1 Decrease in Income taxes payable -2 Net cash provided by (used in) operating activities 168 Option 1 is correct
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