Part IIL Questions 28-30 are worth 8.25 points each. You need to show your calcu
ID: 2423439 • Letter: P
Question
Part IIL Questions 28-30 are worth 8.25 points each. You need to show your calculations to get credit for these questions. 28. swinger Corporation's comparative balance sheet appears belowe Ending Balance Beginning Balance $31,000 Cash and cash equivalents 22,000 Accounts receivable Inventory 65.000 64,000 136,000 Total current assets 356,000 338,000 Property, plant, and equipment 16L000 184,000 Less accumulated depreciation Net property, plant, and equipment Total assets ST08000 294000 Liabilities and Stockholders' Equity current liabilities: $16,000 $17.000 Accounts payable Accrued liabilities 13.000 44.000 63.000 -6.000 Income taxes payable Total current liabilities 123,000 121,000 Bonds payable 83.000 80,000 205.000 201.000 Total liabilities Stockholders' equity: Common stock 24,000 27,000 5.000 69.000 Retained eamings Total stockholders' equity S308000 294000 Total liabilities and stockholders' equity The company did not dispose of any property, plant, and equipment during the year. Its net income for the year was si0,000. The net cash provided by operating activities is: A. $32,000 B. S36,000 C. $34,000 D. $28,000 Page 9 of 12Explanation / Answer
Correct answer is A option
Net income 10000 Add Depreciation (184000-161000) 23000 Less increase in Account receivable (1000) Less increase in inventory (2000) Add increase in account payable 1000 Less decrease in accumulated depreciation (1000) Add increase in income tax payable 2000 Net cash flow from operating activities 32000