Cezar Corporation\'s comparative balance sheet appears below 63,500 59,000 150,0
ID: 2478677 • Letter: C
Question
Cezar Corporation's comparative balance sheet appears below
63,500
59,000
150,000
127,000
189,500
159,000
229,500
231,000
$379,500
$358,000
52,500
49,000
83,600
79,000
203,100
206,000
142,400
113,000
176,400
152,000
$379,500
$358,000
The company did not dispose of any property, plant, and equipment during the year. Its net income for the year was $32,900 and its cash dividends were $3,500. The company did not issue any bonds payable or purchase any of its own common stock during the year. Its net cash provided by operating activities and net cash used in financing activities are:
net cash provided by operating activities, $53,900; net cash used in financing activities,$8,100
net cash provided by operating activities, $33,000; net cash used in financing activities,$3,900
net cash provided by operating activities, $33,000; net cash used in financing activities,$8,100
net cash provided by operating activities, $53,900; net cash used in financing activities,$3,900
Kindly only answer if you are correct. Please show work.
thank you.
Cezar Corporation EndingBalance Beginning
Balance Assets: Current assets: Cash and cash equivalents $ 60,000 $ 39,000 Accounts receivable 26,500 29,000 Inventory
63,500
59,000
Total current assets150,000
127,000
Property, plant, and equipment 419,000 390,000 Less accumulated depreciation189,500
159,000
Net property, plant, equipment229,500
231,000
Total assets$379,500
$358,000
Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 17,000 $ 19,000 Accrued liabilities 50,000 59,000 Income taxes payable52,500
49,000
Total current liabilities 119,500 127,000 Bonds payable83,600
79,000
Total liabilities203,100
206,000
Stockholders' equity: Common stock 34,000 39,000 Retained earnings142,400
113,000
Total stockholders' equity176,400
152,000
Total liabilities and stockholders' equity$379,500
$358,000
Explanation / Answer
net cash provided by operating activities, $53,900; net cash used in financing activities,$3,900
There is no repurchase of common stock and no issue of bonds. That means the common stock of worth $5000 (39000 - 34000) have been retired by issuing bonds worth $4600 (83600 - 79000) and by paying cash of $400 (5000-4600). The journal:
Common stock....Dr. $5000
Bonds payable ..Cr. $4600
Cash..cr. $400
Cash flow from operating activites $ $ Net income 32900 Add: Depreciation (189500-159000) 30500 Decrease in accounts receivable 2500 Increase in income tax payable 3500 36500 69400 Decrease in accounts payable 2000 decrease in accrued liabilites 9000 Increase in inventory 4500 15500 Net cash from operating activites 53900