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12) MC Qu. 93 Stone Retail Corporations most ... Stone Retail Corporation\'s mos

ID: 2576972 • Letter: 1

Question

12) MC Qu. 93 Stone Retail Corporations most ...

Stone Retail Corporation's most recent comparative Balance Sheet is as follows:

Assets

Ending

Beginning

Cash

$51,000

$64,000

Accounts receivable

83,000

41,000

Inventory

96,000

87,000

Property, plant, and equipment

120,000

120,000

Less accumulated depreciation

    65,000

   50,000

Total assets

$285,000

$262,000

Liabilities and Stockholders' Equity

Accounts payable

$12,000

$38,000

Income taxes payable

1,000

3,000

Bonds payable

30,000

5,000

Common stock

100,000

80,000

Retained earnings

142,000

  136,000

Total liabilities and stockholders' equity

$285,000

$262,000


Stone's net income was $46,000. No equipment was sold or purchased. Cash dividends of $40,000 were declared and paid. Stone uses the indirect method to prepare its statement of cash flows.

What is Stone's net cash provided by (used in) investing activities?

A)$25,000

B)$0

C)($15,000)

D)$45,000

Assets

Ending

Beginning

Cash

$51,000

$64,000

Accounts receivable

83,000

41,000

Inventory

96,000

87,000

Property, plant, and equipment

120,000

120,000

Less accumulated depreciation

    65,000

   50,000

Total assets

$285,000

$262,000

Liabilities and Stockholders' Equity

Accounts payable

$12,000

$38,000

Income taxes payable

1,000

3,000

Bonds payable

30,000

5,000

Common stock

100,000

80,000

Retained earnings

142,000

  136,000

Total liabilities and stockholders' equity

$285,000

$262,000

Explanation / Answer

Net cash provided by (used in) investing activities is $0 Option B is correct