Question

The comparative balance sheet for an entity that had profit of $175,000 for the year ended...

The comparative balance sheet for an entity that had profit of $175,000 for the year ended December 31, 20X2, and paid $52,000 of dividends during 20X2 is as follows:

Paz, Inc.

Balance Sheet

At December 31,

12/31 20X2 12/31/20X1

Cash $150,000 $180,000

Accounts receivable 200,000 220,000

Total assets $350,000 $400,000

Payables 80,000 $160,000

Share capital 130,000 125,000

Retained earnings 140,000 115,000

Total liabilities and stockholders' equity $350,000 $400,000

If dividends paid are treated as an operating item, the amount of net cash from operating activities during 20X2 was

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Ans. Particulars Amount
Cash flow from operating activities:
Net income $175,000
Adjustments to reconcile Net income to Net cash
provided by (used for) Operating Activities:
Add: Decrease in accounts receivable ($220,000 - $200,000) $20,000
Less: Decrease in payables ($160,000 - $80,000) -$80,000
Net cash Provided by (Used for) Operating Activities $115,000
*Increase in current liabilities and Decrease in current assets other than cash is added to Net Income.
*Decrease in current liabilities and Increase in current assets other than cash is subtracted from Net Income.
*Non cash & Non operating expenses are adjusted with Net income.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A comparative balance sheet for Corona Co is presented below. December 31 Assets     2020         2019     Cash...
A comparative balance sheet for Corona Co is presented below. December 31 Assets     2020         2019     Cash $140,000 $  50,000 Accounts receivable 160,000 140,000 Inventory 340,000 378,000 Land 140,000 220,000 Equipment 600,000 400,000 Accumulated depreciation–equipment (160,000) (90,000) Total $1,220,000 $1,098,000 Liabilities and Stockholders’ Equity Accounts payable $ 70,000 $ 100,000 Bonds payable 300,000 100,000 Common stock ($1 par) 328,000 340,000 Retained earnings 522,000 558,000 Total $1,220,000 $1,098,000 Additional information: 1.   Net income for 2020 was $300,000; there were no gains or losses. 2.   Cash...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows:    Current Assets...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows:    Current Assets Liabilities Cash $ 27,000 Accounts payable $ 29,000 Accounts receivable 32,000 Notes payable 37,000 Inventory 42,000 Bonds payable 67,000 Prepaid expenses 13,700 Fixed Assets Stockholders’ Equity Gross plant and equipment $ 267,000 Preferred stock $ 37,000 Less: Accumulated depreciation 53,400 Common stock 72,000 Paid in Capital 42,000 Net plant and equipment $ 213,600 Retained earnings 44,300 Total assets $ 328,300 Total liabilities and stockholders’...
The following data came from the balance sheet of Han Company as of December 31, 20X2....
The following data came from the balance sheet of Han Company as of December 31, 20X2.        Dec. 31, 20X2 Dec. 31, 20X1 Machine $3,500 $2,950 Accumulated depreciation on machines 1,400 1,300 Cash 135 180 The following additional data were found in Han Company’s financial statements for 20X2. Sales $10,000 Cash dividends paid 65 New machines purchases (for cash) 1,000 Net income 300 Depreciation expense 270 Gain on sale of old machines 210 How much cash did Han Company receive...
Carr Corporation's comparative balance sheet and income statement for last year appear below: Comparative Balance Sheet...
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 $ 3,150 $ 25,300 Accounts receivable 90,500 78,100 Inventory 42,100 48,410 Prepaid expenses 9,270 15,450 Long-term investments 259,200 216,000 Property, plant, and equipment 525,300 504,000 Less accumulated depreciation 326,400 318,600 Total assets $ 603,120 $ 568,660 Accounts payable $ 9,900 $ 27,250 Accrued liabilities 26,160 18,020 Income taxes payable 52,900 50,600 Bonds payable 164,800 220,000 Common...
Carr Corporation's comparative balance sheet and income statement for last year appear below: Comparative Balance Sheet...
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 $ 3,090 $ 23,920 Accounts receivable 87,200 72,420 Inventory 41,700 49,350 Prepaid expenses 9,720 16,500 Long-term investments 254,400 212,000 Property, plant, and equipment 525,300 513,600 Less accumulated depreciation 326,400 303,850 Total assets $ 595,010 $ 583,940 Accounts payable $ 9,270 $ 26,750 Accrued liabilities 25,200 17,510 Income taxes payable 51,900 50,140 Bonds payable 171,200 220,000 Common...
The following data came from the balance sheet of Han Company as of December 31, 20X2....
The following data came from the balance sheet of Han Company as of December 31, 20X2.                                                                                       Dec. 31, 20X2                                         Dec. 31, 20X1        Machine                                                                      $3,500      $2,950        Accumulated depreciation on machines                1,400           1,300        Cash                                                                               135     180 The following additional data were found in Han Company’s financial statements for 20X2. Sales............................................................ $10,000 Cash dividends paid........................................... 65 New machines purchases (for cash)............... 1,000 Net income......................................................... 300 Depreciation expense........................................ 270 Gain on sale of old machines............................. 210 How much cash did Han Company receive from the sale...
Financial data for Guyer Corporation, for last year follow: Guyer Corporation Balance Sheet Beginning Balance Ending...
Financial data for Guyer Corporation, for last year follow: Guyer Corporation Balance Sheet Beginning Balance Ending Balance Assets Cash $ 140,000 $ 120,000 Accounts receivable 450,000 530,000 Inventory 320,000 380,000 Plant and equipment, net 680,000 680,000 Investment in ABC, Inc. 250,000 280,000 Land (undeveloped) 180,000 170,000 Total assets $ 2,020,000 $ 2,160,000 Liabilities and Stockholders' Equity Accounts payable $ 360,000 $ 310,000 Long-term debt 1,500,000 1,500,000 Stockholders' equity 160,000 350,000 Total liabilities and stockholders' equity $ 2,020,000 $ 2,160,000 Guyer...
Biwott Company Balance Sheet As of December 31, 2021 Assets Cash $  60,000 Accounts Receivable   60,000 Marketable...
Biwott Company Balance Sheet As of December 31, 2021 Assets Cash $  60,000 Accounts Receivable   60,000 Marketable Securities   80,000 Land   20,000 Equipment (net) 160,000 Total $ 380,000 Liabilities and Stockholders' Eqiuity Accounts Payable $  30,000 Taxes Pay. in 10 days   20,000 Bonds Pay. in 4 yrs.   80,000 Common Stock 125,000 Retained Earnings 125,000 Total $ 380,000 What amount of quick assets did Biwott Company hold at December 31, 2021? a. $120,000 b. $140,000 c. $200,000 d. $220,000 Cook Corporation Balance Sheet As...
Poppy Corporation owns 60 percent of Seed Company’s common shares. Balance sheet data for the companies...
Poppy Corporation owns 60 percent of Seed Company’s common shares. Balance sheet data for the companies on December 31, 20X2, are as follows: Poppy Corporation Seed Company Assets Cash $ 90,000 $ 32,000 Accounts Receivable 83,000 57,000 Inventory 118,000 99,000 Buildings and Equipment 660,000 350,000 Less: Accumulated Depreciation (235,000 ) (74,000 ) Investment in Seed Company Stock 135,000 Total Assets $ 851,000 $ 464,000 Liabilities and Owners’ Equity Accounts Payable $ 71,000 $ 39,000 Bonds Payable 250,000 200,000 Common Stock...
Balance Sheet Presentation, Trading Investments The income statement for Delta-tec, Inc., for the year ended December...
Balance Sheet Presentation, Trading Investments The income statement for Delta-tec, Inc., for the year ended December 31, Year 2, was as follows: Delta-tec, Inc. Income Statement (selected items) For the Year Ended December 31, Year 2 Income from operations $163,000 Gain on sale of investments 11,000 Unrealized loss on trading investments (36,000) Net income $138,000 The balance sheet dated December 31, Year 1, showed a Retained Earnings balance of $672,000. During Year 2, the company purchased trading investments for the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT