Question

Kilduff Corporation's balance sheet and Income statement appear below: Comparative Balance Sheet Ending Beginning Balance Balance $ 38 32 707 55 580 316 315 $512 $390 Assets: Cash and cash equivalents Accounts receivable Inventory Property, plant and equipment Less accumulated depreciation Total assets Liabilities and stockholders' equity: Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity $ 64 41 180 282 $512 136 $390 $1,174 771 Income statement Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income Gain on sale of equipment Income before taxes Income taxes Net income $ 190 The company sold equipment for $19 that was originally purchased for $10 and that had accumulated depreciation of $5. The company paid a cash dividend of $44 and it did not issue any bonds payable or repurchase any of its own common stock. The net cash provided by (used in operating activities for the year was: 0 0 0 O $201

Answer 1

Answer: $187

Calculations:

Cash flows from operating activities:
Net income		$190
Adjustments:
Depreciation expense*	$6
Gain on sale of equipment	($14)
Increase in accounts receivable	($4)
Decrease in inventory	$6
Increase in accounts payable	$7
Increase In accrued liabilities	$3
Decrease in income taxes payable	($7)	($3)
Net cash provided by (used in) operating activities		$187

*Depreciation:

Accumulated depreciation, Ending balance	$316
Accumulated depreciation on sold equipment	$5
Accumulated depreciation, Beginning balance	($315)
Deprecation expense	$6