Operating activities section of the company

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Reference no: EM13518260

Daugherty Company's comparative balance sheet and income statement for last year appear below:

Statement of Financial Position


Ending

Beginning


Balance

Balance

Cash

$ 7,000

$ 21,000

Accounts receivable

71,000

47,000

Inventory

62,000

44,000

Prepaid expenses

2,000

9,000

Long-term investments

310,000

240,000

Plant and equipment

370,000

370,000

Accumulated depreciation

(214,000)

(186,000)

Total assets

$608,000

$545,000

Accounts payable

$ 69,000

$ 48,000

Accrued liabilities

2,000

17,000

Taxes payable

28,000

13,000

Bonds payable

140,000

170,000

Deferred taxes

27,000

17,000

Common stock

90,000

70,000

Retained earnings

252,000

210,000

Total liabilities and owners' equity

$608,000

$545,000

Income Statement

Sales

$940,000

Less cost of goods sold

510,000

Gross margin

430,000

Less operating expenses

270,000

Net operating income

160,000

Less income taxes

48,000

Net income

$112,000

The company declared and paid $70,000 in cash dividends during the year.

Required:

a. Construct in good form the operating activities section of the company's statement of cash flows for the year.

b. Construct in good form the investing activities section of the company's statement of cash flows for the year.

c. Construct in good form the financing activities section of the company's statement of cash flows for the year.

Reference no: EM13518260

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