Marks Corporation's balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents $ 47 $ 37 Accounts receivable 53 57 Inventory 63 60 Property, plant, and equipment 548 440 Less accumulated depreciation 295 255 Total assets $ 416 $ 339 Liabilities and stockholders' equity: Accounts payable $ 52 $ 50 Bonds payable 260 250 Common stock 51 50 Retained earnings 53 (11) Total liabilities and stockholders' equity $ 416 $ 339 Net income for the year was $77. Cash dividends were $13. The company did not dispose of any property, plant, and equipment, retire any bonds payable, or repurchase any of its own common stock during the year. Required: Prepare a statement of cash flows in good form using the indirect method.

Question

Business

Lydia Osborne

9 October, 10:38

Marks Corporation's balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents $ 47 $ 37 Accounts receivable 53 57 Inventory 63 60 Property, plant, and equipment 548 440 Less accumulated depreciation 295 255 Total assets $ 416 $ 339 Liabilities and stockholders' equity: Accounts payable $ 52 $ 50 Bonds payable 260 250 Common stock 51 50 Retained earnings 53 (11) Total liabilities and stockholders' equity $ 416 $ 339 Net income for the year was $77. Cash dividends were $13. The company did not dispose of any property, plant, and equipment, retire any bonds payable, or repurchase any of its own common stock during the year. Required: Prepare a statement of cash flows in good form using the indirect method.

+4

Answers (1)

Know the Answer?

Yuliana Fowler · Answer 1

statement of cash flows using the indirect method.

Cash Flow from Operating Activities

Net income for the year was $77

Adjustment of Non-Cash Items:

Depreciation $40

Adjustment for Working Capital items:

Decrease in Accounts receivable $4

Increase in Inventory ($3)

Increase in Accounts Payable $2

Net Cash From Operating Activities $120

Cash Flow from Investing Activities

Purchases of Property, plant, and equipment ($108)

Net Cash used in Investing Activities ($108)

Cash Flow from Financing Activities

Proceeds from Common Stock Issue $1

Dividends Paid ($13)

Net Cash used in Financing Activities ($12)

Net Cash Inflow / (Outflow) during the period $10

Cash and Cash Equivalents at Beginning of the Period $37

Cash and Cash Equivalents at End of the Period $47

Explanation:

Show the Movement of Cash in the 3 categories of

Cash flow from Operating Activities Cash flow from Investing Activities Cash flow from Financing Activities