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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