Use the following to answer questions Q38-Q40: Financial statements of Ansbro Co
ID: 2432693 • Letter: U
Question
Use the following to answer questions Q38-Q40:
Financial statements of Ansbro Corporation follow:
Comparative Balance Sheet
Ending Balance Beginning Balance
Assets:
Cash and cash equivalent $30 $27
Account receivable 79 70
Inventory 40 37
PPE 498 460
Less: accumulated depreciation (322) (297)
Total Assets $325 $297
Liabilities and Stockholders' Equity:
Account payable $47 $58
Bonds payable 134 140
Common stock 73 70
Retained earnings 71 29
Total Liabilities and Equity $325 $297
Income Statement
Sales ---------------------------------------- $715
Cost of goods sold ------------------------ 466
Gross margin ------------------------------- 249
Selling and administrative expense ----- 169
Net operating income --------------------- 80
Income taxed ------------------------------- 24
Net income --------------------------------- $56
Cash dividends were $14. The company did not dispose of any property, plant, and equipment. It did not issue 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) operating activities for the year was:
$54
$80
$58
$2
a.$54
b.$80
c.$58
d.$2
Explanation / Answer
Cash Flows from Operating Activities: Net income 56 Adjustments to reconcile net income to Net cash provided by operating activities Depreciation expense 25 Increase in Accounts receivables -9 Increase in inventory -3 Decrease in accounts payable -11 2 Net cash provided by operating activities 58 Option C is correct
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.