The most recent balance sheet and income statement of Oldaker Corporation appear below:Comparative Balance Sheet Ending BalanceBeginning BalanceAssets: Cash and cash equivalents$31 $29 Accounts receivable 73 79 Inventory 44 45 Property, plant and equipment 728 590 Less accumulated depreciation 253 242 Total assets$623 $501 Liabilities and stockholders' equity: Accounts payable$56 $63 Accrued liabilities 21 22 Income taxes payable 26 28 Bonds payable 121 110 Common stock 33 30 Retained earnings 366 248 Total liabilities and stockholders' equity$623 $501 Income Statement?Sales$921Cost of goods sold 575Gross margin 346Selling and administrative expense 117Net operating income229Income taxes
69Net income $160The company paid a cash dividend of $42 and it did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) operating activities for the year was:
A. $168
B. $8
C. $229
D. $152
Answer: A
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Which of the following statements is true about recklessness?
A. Assumption of risk is not a good defense for recklessness. B. It is best defended with a plea of contributory negligence. C. It is identical to intentional wrongdoing. D. It is more morally objectionable than negligence but less than intentional wrongdoing.
A type of validity that addresses the question of what characteristic the scale is measuring is called construct validity
Indicate whether the statement is true or false
Ferdinand runs a pie shop in a busy metropolis. He sells his fresh pies for $7, but it costs him $2.50 to make them. The cooking equipment in his shop cost him $46,000. How many pies does Ferdinand need to sell to make $50,000 annually?
A. 12,645 pies B. 33,000 pies C. 16,000 pies D. 21,333 pies E. 8,500 pies
Which of the following is an example of fraudulent financial reporting?
A. An employee steals inventory and the "shrinkage" is recorded in cost of goods sold. B. An employee diverts customer payments to his personal use, concealing his actions by debiting an expense account, thus overstating expenses. C. An employee "borrows" tools from the company and neglects to return them; the cost is reported as a miscellaneous operating expense. D. Company management falsifies inventory count tags thereby overstating ending inventory and understating cost of goods sold.