Reference no: EM13678005
Sparky Corp. is in the process of preparing its statement of cash flows for the year ended June 30, 2015. An income statement for the year and comparative balance sheets follow:
For the year ended June 30, 2015
Sales Revenue $550,000
Cost of Goods Sold 350,000
Gross Profit $200,000
Less: General, selling & administrative expenses 130,000
Loss on sale of plant assets 5,000
Interest expense 15,000
Income before taxes $ 50,000
Less: Income tax expense 17,000
Net Income $ 33,000
June 30
2015 2014
Cash $ 31,000 $ 40,000
Accounts Receivable 90,000 75,000
Inventory 80,000 95,000
Prepaid Rent 12,000 16,000
Total current assets $213,000 $226,000
Land $250,000 $170,000
Plant and Equipment 750,000 600,000
Accumulated Depreciation (310,000) (250,000)
Total long-term assets $690,000 $520,000
TOTAL ASSETS (net) $903,000 $746,000
Accounts Payable $155,000 $148,000
Other accrued liabilities 32,000 26,000
Income taxes payable 8,000 10,000
Total current liabilities $195,000 $184,000
Long-term Note payable $100,000 $130,000
Common Stock $350,000 $200,000
Retained Earnings 258,000 232,000
Total stockholders' equity $608,000 $432,000
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY $903,000 $746,000
Dividends were declared and paid during the year. New plant assets were purchased in cash during the year. Also, land was purchased for cash. Equipment was sold during 2015 for cash. The original cost of the equipment was $45,000, and the book value was $30,000. Additional stock was issued for cash, and a portion of the principal on the note payable was repaid.
Determine the Cash Flow From Financing Activities:
A.$113,000
B.$120,000
C.$150,000
D.$180,000