Salsedo Corporation's balance sheet and income statement appear below: Comparative...
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Accounting
Salsedo Corporation's balance sheet and income statement appear below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets:
Cash and cash equivalents
$31
$33
Accounts receivable
24
30
Inventory
53
47
Property, plant and equipment
461
390
Less accumulated depreciation
306
256
Total assets
$263
$244
Liabilities and stockholders equity:
Accounts payable
$42
$49
Accrued liabilities
16
17
Income taxes payable
39
40
Bonds payable
75
90
Common stock
53
50
Retained earnings
38
(2)
Total liabilities and stockholders equity
$263
$244
Income Statement
Sales
$634
Cost of goods sold
400
Gross margin
234
Selling and administrative expense
174
Net operating income
60
Gain on sale of equipment
10
Income before taxes
70
Income taxes
21
Net income
$49
Cash dividends were $9. The company sold equipment for $15 that was originally purchased for $10 and that had accumulated depreciation of $5. It did not issue any bonds payable or repurchase any of its own common stock. The net cash provided by (used in) investing activities for the year was:
($66)
($81)
$15
$66
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