3) MC Qu. 104 The most recent balance sheet ... The most recent balance sheet an
ID: 2576911 • Letter: 3
Question
3) MC Qu. 104 The most recent balance sheet ...
The most recent balance sheet and income statement of Penaloza Corporation appear below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets:
Cash and cash equivalents
$47
$39
Accounts receivable
49
55
Inventory
36
39
Property, plant and equipment
474
370
Less accumulated depreciation
250
218
Total assets
$356
$285
Liabilities and stockholders’ equity:
Accounts payable
$36
$35
Accrued liabilities
27
25
Income taxes payable
36
44
Bonds payable
88
80
Common stock
45
40
Retained earnings
124
61
Total liabilities and equity
$356
$285
Income Statement
Sales
$773
Cost of goods sold
468
Gross margin
305
Selling and administrative expense
189
Net operating income
116
Income taxes
35
Net income
$81
The company paid a cash dividend of $18. 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 questions pertain to the company's statement of cash flows.
The net cash provided by (used in) investing activities for the year was:
A)$104
B)($72)
C)($104)
D)$72
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets:
Cash and cash equivalents
$47
$39
Accounts receivable
49
55
Inventory
36
39
Property, plant and equipment
474
370
Less accumulated depreciation
250
218
Total assets
$356
$285
Liabilities and stockholders’ equity:
Accounts payable
$36
$35
Accrued liabilities
27
25
Income taxes payable
36
44
Bonds payable
88
80
Common stock
45
40
Retained earnings
124
61
Total liabilities and equity
$356
$285
Explanation / Answer
here related to investing activitied is property, plant and equipment only.
Cash provided by investing activities = Property, plant and equipment at begining - Property, plant and equipment at the end
Cash provided by investing activities = $370-$474
Cash provided by investing activities = ($104)
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