Beltram Corporation's balance sheet and income statement appear below:Comparative Balance Sheet Ending BalanceBeginning BalanceAssets: Cash and cash equivalents$30 $26 Accounts receivable 37 43 Inventory 67 63 Property, plant, and equipment 601 560 Less accumulated depreciation 377 360 Total assets$358 $332 ???????Liabilities and stockholders' equity: Accounts payable$42 $46 Accrued liabilities 23 22 Income taxes payable 39 39 Bonds payable 141 170 Common stock 63 60 Retained earnings 50 (5)Total liabilities and stockholders' equity$358 $332 Income StatementSales$710Cost of goods sold 437Gross margin 273Selling and administrative expense 176Net operating income 97??Income taxes 29Net
income$68?The company did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $13.Required:Prepare a statement of cash flows in good form using the indirect method.
What will be an ideal response?
Net income | $68 | |
| Adjustments to convert net income to a cash basis: | ||
| Depreciation ($377 - $360) | $17 | |
| Decrease in accounts receivable ($37 - $43) | 6 | |
| Increase in inventory ($67 - $63) | (4) | |
| Decrease in accounts payable ($42 - $46) | (4) | |
| Increase in accrued liabilities ($23 - $22) |  ? |  |
| Net cash provided by (used in) operating activities | 84 | |
| ? | ? | ? |
| Investing activities: | ||
| Purchase of property, plant, and equipment ($601 - $560) |  ? | ? |
| Net cash provided by (used in) investing activities |  | |
| ? | ? | ? |
| Financing activities: | ||
| Repaying principal on bonds payable ($141 - $170) | (29) | |
| Issuance of common stock ($63 - $60) | 3 | |
| Paying a dividend |  ? | |
| Net cash provided by (used in) financing activities |  | |
| Net increase in cash and cash equivalents | 4 | |
| Beginning cash and cash equivalents | 26 | |
| Ending cash and cash equivalents |  ? |
You might also like to view...
The most effective internal control procedure to prevent or detect the creation of fictitious credit memoranda for sales returns is to
a. supervise the accounts receivable department b. limit access to credit memoranda c. prenumber and sequence check all credit memoranda d. require management approval for all credit memoranda
The entry to record a $750 sale with terms of 2/10, n/30 would include a(n)
a. decrease to Accounts Receivable for $750. b. increase to Sales for $750. c. increase to Sales Discounts for $15. d. decrease to Sales for $735.
A great manager makes a job more enjoyable and productive.
Answer the following statement true (T) or false (F)
An organization with no boundaries, no job descriptions, and no departments violates the concept of:
a. the division of labor b. standardization of parts c. mass production d. accounting e. production