70.2K

Verified Solution

Link Copied!

2.

Majorn Auto Parts Store had net income of $90,000 for the year just ended. Majorn collected the following additional information to prepare its statement of cash flows for the year: $120,000 $ 27,000 $ 44,000 $ 38,000 Cash received from sale of building $224,000 $ 56,000 $ 41,000 Increase in accounts receivable Decrease in inventory Decrease in accounts payable Increase in retained earnings Gain on sale of building Depreciation expense Majorn uses the indirect method to prepare its statement of cash flows. What is Majorn's net cash provided by (used in) operating activities? Comparative Balance Sheet Beginning Ending Balance Balance Assets Current assets: $ 28,000 $ 48,000 Cash and cash equivalents Accounts receivable 23,200 28,000 62,800 58,000 Inventory 134,000 114,000 Total current assets Property, plant, and equipment Less accumulated depreciation 315,000 310,000 178,000 146,000 137,000 164,000 Net property, plant, and equipment $271,000 $278,000 Total assets Liabilities and stockholders' equity Current liabilities: $ 22,800 $ 19,000 Accounts payable Accrued liabilities 68,600 58,000 50,800 48,000 Income taxes payable 125,000 78,000 Total current liabilities 142,200 Bonds payable 50,000 192,200 203,000 Total liabilities Stockholders' equity: Common stock 35,200 39,000 Retained earnings 43,600 36,000 Total stockholders' equity 78,800 75,000 $271,000 $278,000 Total liabilities and stockholders' equity The company's net income for the year was $10,200 and its cash dividends were $2,600. It did not sell or retire any property plant, and equipment during the year. The company's net cash provided by (used in) investing activities is

Answer & Explanation Solved by verified expert

See Answer