The changes in each balance sheet account for Carver Corporationduring the year just completed are as follows:
| Increase | Decrease |
| Cash and cash equivalents | $ | 3,270 | | | | |
| Accounts receivable | $ | 5,450 | | | | |
| Inventory | | | | $ | 6,180 | |
| Prepaid expenses | $ | 3,180 | | | | |
| Long-term investments | | | | $ | 18,360 | |
| Property, plant, and equipment | $ | 11,770 | | | | |
| Accumulated depreciation | $ | 9,540 | | | | |
| Accounts payable | | | | $ | 8,160 | |
| Accrued liabilities | $ | 5,400 | | | | |
| Bonds Payable | | | | $ | 12,840 | |
| Common Stock | $ | 3,240 | | | | |
| Retained Earnings | $ | 5,960 | | | | |
|
Carver Corporation's income statement for the year just endedshows the following:
| Income Statement |
| Sales | $ | 378,000 |
| Cost of goods sold | | 201,400 |
| Gross margin | | 176,600 |
| Selling and administrative expense | | 170,640 |
| Net income | $ | 5,960 |
|
The company did not dispose of any property, plant, andequipment, buy any long-term investments, issue any bonds payable,or repurchase any of its own common stock during the year. CarverCorporation uses the direct method to construct its statement ofcash flows.
Required:
a. Determine the sales adjusted to the cash basis.
b. Determine the cost of goods sold adjusted to the cashbasis.
c. Determine the selling and administrative expenses adjusted toa cash basis.
d. Determine the net cash provided by (used in) operatingactivities. (Negative amounts should be indicated by aminus sign.)
e. Determine the net cash provided by (used in) investingactivities. (Negative amounts should be indicated by aminus sign.)
f. Determine the net cash provided by (used in) financingactivities. (Negative amounts should be indicated by aminus sign.)
