Carr Corporation's comparative balance sheet and income statement for last year appear below: Comparative Balance Sheet Ending Balance Beginning Balance Cash and cash equivalents $ 3,060 $ 25,070 Accounts receivable 88,000 77,390 Inventory 41,300 48,410 Prepaid expenses 9,810 16,500 Long-term investments 252,000 208,000 Property, plant, and equipment 566,500 489,600 Less accumulated depreciation 339,200 318,600 Total assets $ 621,470 $ 546,370 Accounts payable $ 9,180 $ 27,250 Accrued liabilities 25,680 17,850 Income taxes payable 53,900 50,600 Bonds payable 176,000 210,000 Common stock 152,000 140,000 Retained earnings 204,710 100,670 Total liabilities and stockholders' equity $ 621,470 $ 546,370 Income Statement Sales $ 926,500 Cost of goods sold 486,000 Gross margin 440,500 Selling and administrative expense 286,200 Net operating income 154,300 Income taxes 41,300 Net income $ 113,000 The company declared and paid $8,960 in cash dividends during the year. It did not dispose of any property, plant, and equipment during the year. Required: Prepare the operating activities section of the company's statement of cash flows for the year using the direct method. (Enter all amounts as positive values except for adjustments to cash basis that are deducted.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Carr Corporation's comparative balance sheet and income statement for last year appear below:

Comparative Balance Sheet
	Ending Balance	Beginning Balance
Cash and cash equivalents	$ 3,060	$ 25,070
Accounts receivable	88,000	77,390
Inventory	41,300	48,410
Prepaid expenses	9,810	16,500
Long-term investments	252,000	208,000
Property, plant, and equipment	566,500	489,600
Less accumulated depreciation	339,200	318,600
Total assets	$ 621,470	$ 546,370
Accounts payable	$ 9,180	$ 27,250
Accrued liabilities	25,680	17,850
Income taxes payable	53,900	50,600
Bonds payable	176,000	210,000
Common stock	152,000	140,000
Retained earnings	204,710	100,670
Total liabilities and stockholders' equity	$ 621,470	$ 546,370

Income Statement
Sales	$ 926,500
Cost of goods sold	486,000
Gross margin	440,500
Selling and administrative expense	286,200
Net operating income	154,300
Income taxes	41,300
Net income	$ 113,000

The company declared and paid $8,960 in cash dividends during the year. It did not dispose of any property, plant, and equipment during the year.

Required:

Prepare the operating activities section of the company's statement of cash flows for the year using the direct method. (Enter all amounts as positive values except for adjustments to cash basis that are deducted.)

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