Che 12 HomeworkxtC Solved: The following ch X C i ezto.rnheducation.com/hrmtpx A
ID: 2586590 • Letter: C
Question
Che 12 HomeworkxtC Solved: The following ch X C i ezto.rnheducation.com/hrmtpx Apps G Google HrCollege Central Neh spencer Bookmarks-Colege d Log In @ Mylab & Mast enng The following changes took place last year in Pavolik Company's balance sheet accounts Asset and Contra-Asset Accounts Liabilities and Equity Accounts S 35 I Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment $ 1851 Retained earnings Accumulated depreciation S 5 D Accounts payable S 110 Accrued liabilities S 70 D Income taxes payable S 91 Bonds payable S 6D Common stock S 81 150 I $ 80 D S 54 I S 60 1 Decrease: 1·increase Long-term investments that had cost the company $6 were sold during the year for $16 and land that had cost $15 was sold for $9 in addition, the company declared and paid $30 in cash dividends during the year Besides the sale of land, no other sales or retirements of plant and equijpment took place during the The company's income statement for the year follows 700 400 Cost of goods sold Gross margn Selling and admiristrative expenses 184 Net operating inc 116 Loss on sale ol land Gain on 10 4 ncome belore taces ncome taxes 120 36 s 84 The company's beginning cash balance was 550 and its ending balance was $85 the net cash provided by / used in operating activities for the year negative arts.) Qi #10-Covering Section 13 Section 14 and Section 15Explanation / Answer
cash flow statement a cash flow from operating activities net income 84 adjustments add depreciation expenses 60 decrease in inventory 70 income tax expenses 36 increase in accounts payable 35 loss on sale of land 6 1 total 207 less gain on sale of investment 10 increase in prepaid expenses 9 decrease in accounts receivable 110 decrease in accrued liabilities 4 income tax paid 28 2 total 161 a total cash flow from operating activity 130 b cash flow from investing activities sale of investments 16 sale of land 9 purchase of property and plant -200 total cash flow from investing activity -175 c cash flow from financing activities issue of bonds payable 150 repayment of common stock -80 payment of dividend -30 total cash flow from financing activities 40 net increase ( decrease ) in cash -5 cash at the beginning of the period 90 cash at the end of the period 85 note income tax paid 1 increase in income tax payable 8 2 income tax expenses 36 3 income tax paid ( 2 - 1 ) 28 purchase of property 1 book value of land sold 15 2 increase in property and plant 185 3 total purchase value 200