Reference no: EM132527070
Carr Corporation's comparative balance sheet and income statement for last year appear below:
Comparative Balance Sheet Ending Balance Beginning Balance
Cash and cash equivalents $3,270 $25,300
Accounts receivable 88,000 72,420
Inventory 42,100 50,290
Prepaid expenses 9,540 16,200
Long-term investments 261,600 218,000
Property, plant, and equipment 566,500 499,200
Less accumulated depreciation 348,800 312,700
Total assets $622,210 $568,710
Accounts payable $9,900 $26,000
Accrued liabilities 26,400 17,510
Income taxes payable 52,900 49,220
Bonds payable 164,800 220,000
Common stock 160,000 140,000
Retained earnings 208,210 115,980
Total liabilities and stockholders' equity $622,210 $568,710
Income Statement
Sales $897,000
Cost of goods sold 477,000
Gross margin 420,000
Selling and administrative expense 283,500
Net operating income 136,500
Income taxes 40,600
Net income$95,900
- The company declared and paid $3,670 in cash dividends during the year. It did not dispose of any property, plant, and equipment during the year.
Required:
Question 1: Prepare the operating activities section of the company's statement of cash flows for the year using the direct method. (Enter all amounts as positive values except for adjustments to cash basis that are deducted.)