Question

Alcoser Corporation's most recent balance sheet appears below:

Comparative Balance Sheet
	Ending Balance			Beginning Balance
Assets:
Cash and cash equivalents	$	103		$	45
Accounts receivable		57			60
Inventory		77			113
Property, plant, and equipment		650			558
Less accumulated depreciation		256			230
Total assets	$	631		$	546
Liabilities and stockholders' equity:
Accounts payable	$	65		$	74
Accrued liabilities		41			40
Income taxes payable		28			52
Bonds payable		253			224
Common stock		99			93
Retained earnings		145			63
Total liabilities and equity	$	631		$	546

Net income for the year was $109. Cash dividends were $27. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.

The net cash provided by (used in) operating activities for the year was:

a) 142

b) 174

c) 100

d) (33)

Answer 1

Correct answer------------a) 142

Working

Alcoser Corporation
Statement of Cash Flows
For the Year Ended December 31
Cash flows from operating activities:
Net income		$ 109.00
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	$   26.00
Changes in current assets and current liabilities
Decease in accounts receivables	$    3.00
Decrease in inventory	$   36.00
Decrease in accounts payable	$   (9.00)
Increase in Accrued liabilities	$       1.00
Decrease in Income taxes payable	$ (24.00)
		$   33.00
Net cash from Operating Activities		$ 142.00

Depreciation expense is the difference between accumulated depreciation balances in both years.