Determine net cash provided by used in operating activities

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Reference no: EM13546344

Smigel Corporation's balance sheet and income statement appear below:

Smigel Corporation's
Balance Sheet


Ending Balance

Beginning
Balance

Assets





Cash and cash equivalents

$

24

$

25

Accounts receivable


58


51

Inventory


61


62

Property, plant and equipment


452


430

Less accumulated depreciation


218


185






Total assets

$

377

$

383






Liabilities and stockholders' equity:





Accounts payable

$

63

$

56

Accrued liabilities


27


23

Income taxes payable


39


35

Bonds payable


59


60

Common stock


53


50

Retained earnings


136


159






Total liabilities and stockholders' equity

$

377

$

383


Smigel Corporation's
Income Statement

Sales

$

317

Cost of goods sold


210




Gross margin


107

Selling and administrative expense


144




Net operating income


(37)

Gain on sale of equipment


15




Income before taxes


(22)

Income taxes


0




Net income

$

(22)





Cash dividends were $1. The company sold equipment for $15 that was originally purchased for $5 and that had accumulated depreciation of $5.

Required:

Determine the net cash provided by (used in) operating activities for the year using the indirect method

Reference no: EM13546344

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