7) MC Qu. 108 Financial statements of ... Financial statements of Rukavina Corpo
ID: 2576917 • Letter: 7
Question
7) MC Qu. 108 Financial statements of ...
Financial statements of Rukavina Corporation follow:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets:
Cash and cash equivalents
$36
$38
Accounts receivable
39
44
Inventory
34
35
Property, plant and equipment
386
360
Less accumulated depreciation
202
191
Total assets
$293
$286
Liabilities and stockholders’ equity:
Accounts payable
$71
$61
Bonds payable
176
220
Common stock
81
80
Retained earnings
(35)
(75)
Total liabilities and equity
$293
$286
Income Statement
Sales
$518
Cost of goods sold
336
Gross margin
182
Selling and administrative expense
113
Net operating income
69
Income taxes
21
Net income
$48
Cash dividends were $8. 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) financing activities for the year was:
A)($8)
B)$1
C)($51)
D)($44)
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets:
Cash and cash equivalents
$36
$38
Accounts receivable
39
44
Inventory
34
35
Property, plant and equipment
386
360
Less accumulated depreciation
202
191
Total assets
$293
$286
Liabilities and stockholders’ equity:
Accounts payable
$71
$61
Bonds payable
176
220
Common stock
81
80
Retained earnings
(35)
(75)
Total liabilities and equity
$293
$286
Explanation / Answer
Cash flows from financing activities: Repayment of Bonds payable -44 Issuance of Common stock 1 Cash dividends paid -8 Net cash provided by (used in) financing activities -51 Option C is correct
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