Harkey Corporation's balance sheet and income statement appear below:Comparative Balance Sheet Ending BalanceBeginning BalanceAssets: Cash and cash equivalents$32 $35 Accounts receivable 74 71 Inventory 41 42 Property, plant and equipment 443 370 Less accumulated depreciation 194 164 Total assets$ 396 $ 354 Liabilities and stockholders' equity: Accounts payable$26 $28 Accrued liabilities 28 25 Income taxes payable 40 36 Bonds payable 120 170 Common stock 83 80 Retained earnings 99 15 Total liabilities and stockholders' equity$ 396 $ 354 Income StatementSales$ 923Cost of goods sold 604Gross margin319Selling and administrative expense 169Net operating income150Gain on sale of equipment 11Income
before taxes161Income taxes 48Net income$ 113Cash dividends were $29. The company sold equipment for $15 that was originally purchased for $6 and that had accumulated depreciation of $2.Required:Using the direct method, determine the net cash provided by (used in) operating activities.
What will be an ideal response?
| Sales (as reported) | $ 923 | ? |
| Adjustments to a cash basis: | ? | ? |
| Increase in accounts receivable ($74 - $71) | -3 | $ 920 |
| ? | ? | ? |
| Cost of goods sold (as reported) | 604 | ? |
| Adjustments to a cash basis: | ? | ? |
| Decrease in inventory ($41 - $42) | -1 | ? |
| Decrease in accounts payable ($26 - $28) | +2 | 605 |
| ? | ? | ? |
| Selling and administrative expense (as reported) | 169 | ? |
| Adjustments to a cash basis: | ? | ? |
| Increase in accrued liability ($28 - $25) | -3 | ? |
| Depreciation (($194 - $164) + $2) | -32 | 134 |
| ? | ? | ? |
| Income tax expense (as reported) | 48 | ? |
| Adjustments to a cash basis: | ? | ? |
| Increase in income taxes payable ($40 - $36) | -4 | 44 |
| ? | ? | ? |
| Net cash provided by (used in) operating activities | ? | $ 137 |
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Cutsinger Corporation has provided the following data from its most recent income statement: Net operating income$55,000 Interest expense$43,000 Net income before taxes$12,000 Income taxes$4,000 Net income$8,000 The times interest earned ratio is closest to:
A. 1.28 B. 0.28 C. 0.19 D. 1.83