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10) MC Qu. 109 Buckley Corporations most recent ... Buckley Corporation\'s most

ID: 2576920 • Letter: 1

Question

10) MC Qu. 109 Buckley Corporations most recent ...

Buckley Corporation's most recent comparative balance sheet appears below:

Comparative Balance Sheet

Ending Balance

Beginning Balance

Assets:

Cash and cash equivalents

$19

$20

Accounts receivable

26

27

Inventory

56

51

Property, plant and equipment

686

550

Less accumulated depreciation

430

363

Total assets

$357

$285

Liabilities and stockholders' equity:

Accounts payable

$30

$34

Bonds payable

43

40

Common stock

54

50

Retained earnings

230

161

Total liabilities and stockholders' equity

$357

$285


The company's net income for the year was $91 and it paid a cash dividend of $22. It did not dispose of any property, plant, and equipment during the year. The company did not retire any bonds payable or repurchase any of its own common stock.

The net cash provided by (used in) operating activities for the year was:

$32

$150

$59

$130

Comparative Balance Sheet

Ending Balance

Beginning Balance

Assets:

Cash and cash equivalents

$19

$20

Accounts receivable

26

27

Inventory

56

51

Property, plant and equipment

686

550

Less accumulated depreciation

430

363

Total assets

$357

$285

Liabilities and stockholders' equity:

Accounts payable

$30

$34

Bonds payable

43

40

Common stock

54

50

Retained earnings

230

161

Total liabilities and stockholders' equity

$357

$285

Explanation / Answer

Statement of Cash Flows (partial) Net income 91 Adjustments to convert net income to a cash basis: Depreciation 67 Decrease in accounts receivable 1 Increase in inventory -5 Decrease in accounts payable -4 59 Net cash provided by operating activities 150 Option 2 is correct

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