80.2K

Verified Solution

Link Copied!

The most recent balance sheet and income statement of Penaloza Corporation appear below:

Comparative Balance Sheet

Ending Beginning

Balance Balance

Assets:

Cash and cash equivalents............... $47 $39

Accounts receivable......................... 49 55

Inventory.......................................... 36 39

Property, plant and equipment......... 474 370

Less accumulated depreciation........ 250 218

Total assets..................................... $356 $285

Liabilities and stockholders' equity:

Accounts payable.......................... $36 $35

Accured liabilities.......................... 27 25

Income taxes payable.................... 36 44

Bonds payable............................... 88 80

Common stock.............................. 45 40

Retained earnings........................ 124 61

Total liabilities and equity.............. $356 $285

Income Statement

Sales............................................................. $773

Cost of goods sold....................................... 468

Gross margin.............................................. 305

Selling and admin. expense...................... 189

Net opening income................................. 116

Income taxes........................................... 35

Net Income............................................. $81

: The company paid a cash dividend of $18. It did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows.

1. The net cash provided by (used in) operating activities for the year was: A. $117 B. $45 C. $36 D. $116

2. The net cash provided by (used in) investing activities for the year was: A. $72 B. $104 C. $(104) D. $(72)

3. The net cash provided by (used in) financing activities for the year was: A. $(18) B. $5 C. $(5) D. $8 Data from Dunshee Corporation's most recent balance sheet appear below: Year 2 Year 1 Current assets: Cash................... $130 $100 Accounts receivable..... 270 290 Inventory...................... 90 110 Prepaid expenses........ 10 10 Total current assets..... $500 $510 Total current liabilities.... $230 $220 Sales on account in Year 2 ammounted to $1,170 and the cost of goods sold was $730. 4. The working capital at the end of Year 2 is: A. $270 B. $500 C. $770 D. $740 5. The current ratio at the end of Year 2 is closest to: A. 0.38 B. 2.17 C. 0.94 D. 0.40 6. The acid-test ratio at the end of Year 2 is closest to: A. 2.17 B. 1.78 C. 1.74 D. 1.06 7. The average collection period for Year 2 is closest to: A. 1.1 days B. 0.9 days C. 84.3 days D. 87.3 days 8. The average sale period for Year 2 is closest to: A. 28.1 days B. 45.0 days C. 50.0 days D. 227.7 days

Answer & Explanation Solved by verified expert

See Answer