Maloney Corporation's balance sheet and income statement appear below:Comparative Balance Sheet Ending BalanceBeginning BalanceAssets: Cash and cash equivalents$26 $22 Accounts receivable 44 49 Inventory 38 40 Property, plant and equipment 646 500 Less accumulated depreciation 273 260 Total assets$ 481 $ 351 Liabilities and stockholders' equity: Accounts payable$65 $64 Accrued liabilities 22 25 Income taxes payable 33 35 Bonds payable 72 70 Common stock 73 70 Retained earnings 216 87 Total liabilities and stockholders' equity$ 481 $ 351 Income StatementSales$ 1,059Cost of goods sold 698Gross margin361Selling and administrative expense 117Net operating income244Income taxes 73Net income$
171Cash dividends were $42. 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 using the direct method.
What will be an ideal response?
| Sales (as reported) | $ 1,059 | ? |
| Adjustments to a cash basis: | ? | ? |
| Decrease in accounts receivable ($44 - $49) | +1 | $ 1,064 |
| ? | ? | ? |
| Cost of goods sold (as reported) | 698 | ? |
| Adjustments to a cash basis: | ? | ? |
| Decrease in inventory ($38 - $40) | -2 | ? |
| Increase in accounts payable ($65 - $64) | -1 | 695 |
| ? | ? | ? |
| Selling and administrative expense (as reported) | 117 | ? |
| Adjustments to a cash basis: | ? | ? |
| Decrease in accrued liabilities ($22 - $25) | +3 | ? |
| Depreciation ($273 - $260) | -13 | 107 |
| ? | ? | ? |
| Income taxes | 73 | ? |
| Adjustments to a cash basis: | ? | ? |
| Decrease in income taxes payable ($33 - $35) | +2 | 75 |
| ? | ? | ? |
| Net cash provided by (used in) operating activities | ? | $ 187 |
You might also like to view...
Which Principle of the AICPA Code of Professional Conduct is: A member, as a professional, should exercise sensitive and moral judgments in all their activities?
A) Objectivity and Independence B) Integrity C) Responsibilities D) Due Care
A(n) ________ is like an egg-it takes a long time to hatch and is fragile, it is easy to break, and very had to rebuild once broken.
Fill in the blank(s) with the appropriate word(s).
Which of the following is NOT part of the capital budgeting process?
A) develop short-term operating strategies B) identify and analyze potential capital investments C) apply capital rationing D) perform post-audits
The order of the three sequential steps involved in decision modeling is: formulation, solution, and interpretation
Indicate whether the statement is true or false