Foxworthy Corporation\'s most recent balance sheet appears below: Net income for

Question

Foxworthy Corporation's most recent balance sheet appears below:

  

Net income for the year was $79. Cash dividends were $15. The net cash provided by (used by) operations for the year was:
A. $80
B. $78
C. ($1)
D. $113

Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents $36 $35 Accounts receivable 71 63 Inventory 63 64 Plant equipment 552 500 Less accumulated depreciation 336 319 Total assets.................................. $386 $343 Liabilities and stockholders' equity Accounts payable $42 $48 Wages payable 16 18 Taxes payable 16 14 Bonds payable 89 100 Deferred taxes 15 20 Common stock 31 30 Retained earnings 177 113 Total liabilities and stockholders' equity $386 $343

Explanation / Answer

79+17+1-8-6-2+2-5= $78

Cash Flows from Operating Activities: Net Income + Non-Cash Expenses: (Depreciation, Depletion & Amortization Expense) + Non-Operating Losses: (Loss on Sale of Non-Current Assets) ? Non-Operating Gains: (Gain on Sale of Non-Current Assets) + Decrease in Current Assets: (Accounts Receivable, Prepaid Expenses, Inventory etc.) ? Increase in Current Assets + Increase in Current Liabilities: (Accounts Payable, Accrued Liabilities, Income Tax Payable etc.) ? Decrease in Current Liabilities = Net Cash Flow from Operating Activities

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