Digby Corporation's balance sheet and income statement appear below:Comparative Balance Sheet Ending BalanceBeginning BalanceAssets: Cash and cash equivalents$34 $28 Accounts receivable 76 65 Inventory 34 38 Property, plant and equipment 607 490 Less accumulated depreciation 350 328 Total assets$401 $293 Liabilities and stockholders' equity: Accounts payable$30 $36 Bonds payable 265 290 Common stock 43 40 Retained earnings 63 (73)Total liabilities and stockholders' equity$401 $293? Income Statement?Sales$1,075Cost of goods sold 654Gross margin 421Selling and administrative expense 185Net operating income236Income taxes 71Net income $165Cash dividends were $29. The company did not dispose of any
property, plant, and equipment during the year.Required:Prepare the operating activities section of the statement of cash flows in good form using the direct method.
What will be an ideal response?
| Sales (as reported) | $1,075 | ? |
| Adjustments to a cash basis: | ? | ? |
| Increase in accounts receivable ($76 - $65) | -11 | $1,064 |
| ? | ? | ? |
| Cost of goods sold (as reported) | 654 | ? |
| Adjustments to a cash basis: | ? | ? |
| Increase in inventory ($34 - $38) | -4 | ? |
| Decrease in accounts payable ($30 - $36) | +6 | 656 |
| ? | ? | ? |
| Selling and administrative expense (as reported) | 185 | ? |
| Adjustments to a cash basis: | ? | ? |
| Depreciation ($350 - $328) | -22 | 163 |
| ? | ? | ? |
| Income taxes | ? | 71 |
| Net cash provided by (used in) operating activities | ? | $174 |
You might also like to view...
Sales returns and allowances is a contra_____________account
Fill in the blank(s) with correct word
If a customer owes interest on accounts receivable, Interest Receivable is debited and Accounts Receivable is credited.
Answer the following statement true (T) or false (F)
Which of the following is NOT a category of quality costs?
a. performance costs b. prevention costs c. appraisal costs d. internal failure costs
Modern Bride is a publication that contains articles and lots of ads for the bride-to-be. Many young women consult this magazine as they plan their special day. The segmentation base used to define the publication's target market is based on _____ variables.
A. geodemographic B. geographic C. family life-cycle D. lifestyle E. psychographic