50.1K

Verified Solution

Link Copied!

Illies Corporation's comparative balance sheet appears below:

Comparative Balance Sheet
	Ending Balance			Beginning Balance
Assets:
Current assets:
Cash and cash equivalents	$	55,000		$	48,000
Accounts receivable		34,000			37,500
Inventory		82,000			85,500
Total current assets		171,000			171,000
Property, plant, and equipment		403,000			369,000
Less accumulated depreciation		186,000			147,000
Net property, plant, and equipment		217,000			222,000
Total assets	$	388,000		$	393,000
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable	$	33,000		$	35,500
Accrued liabilities		69,000			75,500
Income taxes payable		66,000			57,000
Total current liabilities		168,000			168,000
Bonds payable		97,000			108,500
Total liabilities		265,000			276,500
Stockholders equity:
Common stock		45,500			37,000
Retained earnings		77,500			79,500
Total stockholders equity		123,000			116,500
Total liabilities and stockholders' equity	$	388,000		$	393,000

The company did not dispose of any property, plant, and equipment during the year. Its net income for the year was $3,000 and its cash dividends were $5,000. The company did not issue any bonds payable or purchase any of its own common stock during the year. Its net cash provided by (used in) operating activities and net cash provided by (used in) financing activities are:

A) net cash provided by (used in) operating activities, $49,000; net cash provided by (used in) financing activities, $(8,000)

B) net cash provided by (used in) operating activities, $52,500; net cash provided by (used in) financing activities, $(8,000)

C) net cash provided by (used in) operating activities, $49,000; net cash provided by (used in) financing activities, $(8,500)

D) net cash provided by (used in) operating activities, $52,500; net cash provided by (used in) financing activities, $(8,500)

Answer & Explanation Solved by verified expert

See Answer