70.2K

Verified Solution

Link Copied!

8. Fox Company's income statement and comparative balance sheets follow. FOX COMPANY Income Statement For Year Ended December 31, 2017 $1,270,000 Sales Cost of goods sold Wages expense Insurance expense Depreciation expense Interest expense Income tax expense Net income $860,000 172,000 16,000 34,000 18,000 58,000 1,158,000 $ 112,000 Continued next page FOX COMPANY Balance Sheets Dec. 31, 2017 Dec. 31, 2016 Assets Cash Accounts receivable Inventory Prepaid insurance Plant assets Accumulated depreciation Total assets $ 22,000 82,000 180,000 10,000 500,000 (136,000) $658,000 $ 10,000 64,000 120,000 14,000 390,000 (102,000) $496,000 Liabilities and Stockholders' Equity Accounts payable Wages payable Income tax payable Bonds payable Common stock Retained earnings Total liabilities and equity $ 14,000 18,000 14,000 260,000 180,000 172,000 $658,000 $ 20,000 12,000 16,000 150,000 180,000 118,000 $496,000 Cash dividends of $58,000 were declared and paid during 2017. Also in 2017, plant assets were purchased for cash, and bonds payable were issued for cash. Bond interest is paid semiannually on June 30 and December 31. Accounts payable relate to merchandise purchases. Compute the net cash flow from financing activities for 2017. a. $ 110,000 b. ($ 58,000) C. ($110,000) d. $ 52,000

Answer & Explanation Solved by verified expert

See Answer