Oriole Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Oriole as of May 31, 2020, are as follows. The company is preparing its statement of cash flows. ORIOLE COMPANY COMPARATIVE BALANCE SHEET AS OF MAY 31     2020   2019 Current assets            Cash   $28,300   $20,100    Accounts receivable   74,800   57,600    Inventory   219,200   249,500    Prepaid expenses   8,900   7,100      Total current assets   331,200   334,300           Plant assets            Plant assets   596,000   505,100    Less: Accumulated depreciation—plant assets   150,400   124,300      Net plant assets   445,600   380,800 Total assets   $776,800   $715,100           Current liabilities            Accounts payable   $122,200   $114,700    Salaries and wages payable   47,700   72,100    Interest payable   26,700   24,700      Total current liabilities   196,600   211,500           Long-term debt            Bonds payable   70,000   100,000      Total liabilities   266,600   311,500           Stockholders’ equity            Common stock, $10 par   370,000   280,000    Retained earnings   140,200   123,600      Total stockholders’ equity   510,200   403,600 Total liabilities and stockholders’ equity   $776,800   $715,100 ORIOLE COMPANY INCOME STATEMENT FOR THE YEAR ENDED MAY 31, 2020 Sales revenue   $1,255,000 Cost of goods sold   715,500    Gross profit   539,500       Expenses        Salaries and wages expense   251,700    Interest expense   74,300    Depreciation expense   26,100    Other expenses   8,100      Total expenses   360,200 Operating income   179,300    Income tax expense   43,200 Net income   $136,100 The following is additional information concerning Oriole’s transactions during the year ended May 31, 2020. 1.   All sales during the year were made on account. 2.   All merchandise was purchased on account, comprising the total accounts payable account. 3.   Plant assets costing $90,900 were purchased by paying $21,900 in cash and issuing 6,900 shares of stock. 4.   The “other expenses” are related to prepaid items. 5.   All income taxes incurred during the year were paid during the year. 6.   In order to supplement its cash, Oriole issued 2,100 shares of common stock at par value. 7.   Cash dividends of $119,500 were declared and paid at the end of the fiscal year. (b)   Your answer has been saved. See score details after the due date.     Using the indirect method, calculate only the net cash flow from operating activities for Oriole Company for the year ended May 31, 2020. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) ORIOLE COMPANY Statement of Cash Flows (Partial)                                                                                                                                                                                                                               $  Adjustments to reconcile net income to                                                                                                                                                         $                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            $

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11.C

Oriole Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Oriole as of May 31, 2020, are as follows. The company is preparing its statement of cash flows.

ORIOLE COMPANY
COMPARATIVE BALANCE SHEET
AS OF MAY 31
   
2020
 
2019
Current assets        
   Cash  
$28,300
 
$20,100
   Accounts receivable  
74,800
 
57,600
   Inventory  
219,200
 
249,500
   Prepaid expenses  
8,900
 
7,100
     Total current assets  
331,200
 
334,300
         
Plant assets        
   Plant assets  
596,000
 
505,100
   Less: Accumulated depreciation—plant assets  
150,400
 
124,300
     Net plant assets  
445,600
 
380,800
Total assets  
$776,800
 
$715,100
         
Current liabilities        
   Accounts payable  
$122,200
 
$114,700
   Salaries and wages payable  
47,700
 
72,100
   Interest payable  
26,700
 
24,700
     Total current liabilities  
196,600
 
211,500
         
Long-term debt        
   Bonds payable  
70,000
 
100,000
     Total liabilities  
266,600
 
311,500
         
Stockholders’ equity        
   Common stock, $10 par  
370,000
 
280,000
   Retained earnings  
140,200
 
123,600
     Total stockholders’ equity  
510,200
 
403,600
Total liabilities and stockholders’ equity  
$776,800
 
$715,100

ORIOLE COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED MAY 31, 2020
Sales revenue  
$1,255,000
Cost of goods sold  
715,500
   Gross profit  
539,500
     
Expenses    
   Salaries and wages expense  
251,700
   Interest expense  
74,300
   Depreciation expense  
26,100
   Other expenses  
8,100
     Total expenses  
360,200
Operating income  
179,300
   Income tax expense  
43,200
Net income  
$136,100

The following is additional information concerning Oriole’s transactions during the year ended May 31, 2020.

1.   All sales during the year were made on account.
2.   All merchandise was purchased on account, comprising the total accounts payable account.
3.   Plant assets costing $90,900 were purchased by paying $21,900 in cash and issuing 6,900 shares of stock.
4.   The “other expenses” are related to prepaid items.
5.   All income taxes incurred during the year were paid during the year.
6.   In order to supplement its cash, Oriole issued 2,100 shares of common stock at par value.
7.   Cash dividends of $119,500 were declared and paid at the end of the fiscal year.

(b)

 
Your answer has been saved. See score details after the due date.

 

 

Using the indirect method, calculate only the net cash flow from operating activities for Oriole Company for the year ended May 31, 2020. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

ORIOLE COMPANY
Statement of Cash Flows (Partial)
                                                                       
                                                                       
   
                                                                       
 
Adjustments to reconcile net income to    
                                                                       
   
                                                                       
 
                                                                       
 
 
                                                                       
 
 
                                                                       
 
 
                                                                       
 
 
                                                                       
 
 
                                                                       
 
 
   
 
                                                                       
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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