Alcoser Corporation's most recent balance sheet appears below:
Comparative Balance Sheet
Ending Balance Beginning Balance
Assets:
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 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 stockholders' 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) financing activities for the year was
A) $10
B) $5
C) $(12)
D) $17
Solution:
Net cash provided by (used in) financing activities = Issue of common stock + Issue of bond payable - Dividend payable
= (75 - 70) + (217 - 200) - 12
= 5 + 17 - 12
= $10
Hence option "A" is correct.
Alcoser Corporation's most recent balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets:...