Reference no: EM13566441
Alkine Company's comparative balance sheet appears below:
Ending Beginning
Cash .................................................................................$15,000......$20,000
Accounts receivable..............................................................25,000........27,000
Inventory...............................................................................35,000........32,000
Prepaid expenses...................................................................5,000..............8,000
Long-term investments .........................................................38,000.......... 40,000
Property, plant & equipment ..................................................92,000..........80,000
Less accumulated depreciation...............................................30,000.........25,000
Total assets.............................................................................$180,000..... $182,000
Accounts payable ...................................................................$ 38,000...... $ 30,000
Income taxes payable............................................................... 35,000....... 25,000
Bonds payable ........................................................................32,000 ........40,000
Common stock......................................................................... 40,000......... 37,000
Retained earnings...................................................................... 35,000....... 50,000
Total liabilities & equity.............................................................$180,000..... $182,000
Dividends were declared and paid during the year. A gain of $8,000 was recorded on the sale of the long-term investments. The company did not purchase any long-term investments or dispose of any property, plant, and equipment during the year. It also did not issue any bonds payable or repurchase any of its own common stock.
1. Under the direct method, the sales adjusted to a cash basis would be:
A. $252,000 B. $244,000 C. $260,000 D. $250,000
2. Under the direct method, the cost of goods sold adjusted to a cash basis would be:
A. $152,000 B. $160,000 C. $163,000 D. $155,000
3. The net cash provided (used) by financing activities would be:
A. $3,000 B. $(5,000) C. $(58,200) D. $(61,200)
4. The net cash provided (used) by operating activities would be:
A. $45,200 B. $60,000 C. $37,200 D. $55,200
5. The net cash provided (used) by investing activities would be:
A. $10,000 B. $(2,000) C. $22,000 D. $1,000