1. McCorey Corporation recorded the following events last year:
Repurchase by the company of its own common stock $37,000
Sale of long-term investment $56,000
Interest paid to lenders $13,500
Dividends paid to the company's shareholders $66,000
Collection by McCorey of a loan made to another company $42,000
Payment of taxes to governmental bodies $23,500
On the statement of cash flows, some of these events are classified as operating activities, some are classified as investing activities, and some are classified as financing activities. Based solely on the information above, the net cash provided by (used in) investing activities on the statement of cash flows would be:
$98,000
$(10,500)
$32,000
$(18,500)
2. Financial statements of Rukavina Corporation follow:
Rukavina Corporation Comparative Balance
Assets: Ending Balance Beginning Balance
Cash and cash equivalents $31 $28
Accounts receivable 92 79
Inventory 48 38
Property, plant and equipment 633 550
Less: accumulated depreciation 349 294
Total assets $455 $401
Liabilities and stockholders' equity:
Accounts payable $48 $66
Bonds payable 130 180
Common stock 94 79
Retained earnings 183 76
Total liabilities and stockholders' equity $455 $401
Income Statement
Sales $740
Cost of goods sold 406
Gross margin 334
Selling and administrative expenses 125
Net operating income 209
Income taxes 75
Net income $134
Cash dividends were $27. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows. The net cash provided by (used in) investing activities for the year was:
$15
$(83)
$(50)
$(27)
3. Alcoser Corporation's most recent balance sheet appears below:
Comparative Balance Sheet
Assets Ending Balance Beginning Balance
Cash and cash equivalents $34 $29
Accounts receivable 32 36
Inventory 53 66
Property, plant and equipment 554 480
Less accumulated depreciation 208 206
Total assets $465 $405
Liabilities and stockholders’ equity:
Accounts payable $41 $50
Accrued liabilities 17 16
Income taxes payable 28 30
Bonds payable 217 200
Common stock 75 70
Retained earnings 87 39
Total liabilities and equity $465 $405
Net income for the year was $60. Cash dividends were $12. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows. The net cash provided by (used in) investing activities for the year was:
$74
($74)
($72)
$72