80.2K
Verified Solution
Link Copied!
Harkey Corporation's balance sheet and income statement appear below:
| Comparative Balance Sheet |
| | Ending Balance | Beginning Balance |
| Assets: | | | | | | |
| Cash and cash equivalents | $ | 34 | | $ | 37 | |
| Accounts receivable | | 80 | | | 77 | |
| Inventory | | 44 | | | 46 | |
| Property, plant, and equipment | | 483 | | | 392 | |
| Less accumulated depreciation | | 213 | | | 180 | |
| Total assets | $ | 428 | | $ | 372 | |
| Liabilities and stockholders' equity: | | | | | | |
| Accounts payable | $ | 27 | | $ | 29 | |
| Accrued liabilities | | 30 | | | 26 | |
| Income taxes payable | | 41 | | | 37 | |
| Bonds payable | | 132 | | | 180 | |
| Common stock | | 85 | | | 87 | |
| Retained earnings | | 113 | | | 13 | |
| Total liabilities and stockholders' equity | $ | 428 | | $ | 372 | |
| |
| Income Statement |
| Sales | $ | 1,090 |
| Cost of goods sold | | 640 |
| Gross margin | | 450 |
| Selling and administrative expense | | 179 |
| Net operating income | | 271 |
| Gain on sale of equipment | | 10 |
| Income before taxes | | 281 |
| Income taxes | | 49 |
| Net income | $ | 232 |
| |
Cash dividends were $132. The company sold equipment for $15 that was originally purchased for $7 and that had accumulated depreciation of $2.
Required:
Using the direct method, determine the net cash provided by (used in) operating activities.
Answer & Explanation
Solved by verified expert
