Dorris Corporation\'s balance sheet and income statement appear below: Comparati
ID: 2597874 • Letter: D
Question
Dorris Corporation's balance sheet and income statement appear below:
Comparative Balance Sheet
Assets
Ending Balance
Beginning Balance
Current assets:
Cash and cash equivalents
$42
$40
Accounts receivable
49
57
Inventory
52
44
Total current assets
143
141
Property, plant, and equipment
456
410
Less accumulated depreciation
203
186
Net property, plant, and equipment
253
224
Total Assets
$396
$365
Liabilities and stockholders’ equity
Ending Balance
Beginning Balance
Current liabilities:
Accounts payable
$27
$33
Accrued liabilities
16
19
Income taxes payable
42
42
Total current liabilities
85
94
Bonds payable
76
70
Total liabilities
161
164
Stockholders’ equity:
Common stock
45
40
Retained earnings
190
161
Total stockholders’ equity
235
201
Total liabilities and stockholders equity
396
365
Income Statement
Sales
$587
Cost of goods sold
385
Gross margin
202
Selling and administrative expense
167
Net operating income
35
Gain on sale
16
Income before taxes
51
Income taxes
15
Net income
$36
Cash dividends were $7. The company sold equipment for $18 that was originally purchased for $8 and that had accumulated depreciation of $6. The net cash provided by (used in) operating activities for the year was:
$34
$35
$50
$41
Assets
Ending Balance
Beginning Balance
Current assets:
Cash and cash equivalents
$42
$40
Accounts receivable
49
57
Inventory
52
44
Total current assets
143
141
Property, plant, and equipment
456
410
Less accumulated depreciation
203
186
Net property, plant, and equipment
253
224
Total Assets
$396
$365
Explanation / Answer
Answer:- The net cash provided by (used in) operating activities for the year was : $34.
Explanation:-
Dorris Corporation Statement of Cash Flow (Using Indirect Method) Particulars Amount $ $ Net Income 36 Adjustments to reconcile net income to net cash provided by opreating activities Adjustment for non cash effects Depreciation 23 Gain on sale of equipment -16 Change in opreating assets & liabilities Decrease in Accounts Receiviable 8 Increase in Inventory -8 Decrease in Accrued liabilities -3 Decrease in Accounts payable -6 Net cash flow from opreating activities 34Related Questions
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