|
Hocking Corporation’s comparative balance sheet appears below: |
| Hocking Corporation Comparative Balance Sheet |
||
| Ending Balance |
Beginning Balance |
|
| Assets: | ||
| Current assets: | ||
| Cash and cash equivalents | $ 58,000 | $ 38,000 |
| Accounts receivable | 32,200 | 38,000 |
| Inventory | 73,800 | 68,000 |
| Prepaid expenses |
25,200 |
28,000 |
| Total current assets |
189,200 |
172,000 |
| Property, plant, and equipment | 376,000 | 348,000 |
| Less accumulated depreciation |
198,000 |
166,000 |
| Net property, plant, and equipment |
178,000 |
182,000 |
| Total assets |
$367,200 |
$354,000 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities: | ||
| Accounts payable | $ 33,800 | $ 29,000 |
| Accrued liabilities | 77,800 | 68,000 |
| Income taxes payable |
61,800 |
58,000 |
| Total current liabilities | 173,400 | 155,000 |
| Bonds payable |
60,000 |
88,000 |
| Total liabilities |
233,400 |
243,000 |
| Stockholders’ equity: | ||
| Common stock | 46,300 | 49,000 |
| Retained earnings |
87,500 |
62,000 |
| Total stockholders’ equity |
133,800 |
111,000 |
| Total liabilities and stockholders’ equity |
$367,200 |
$354,000 |
|
The company’s net income (loss) for the year was $32,000 and its cash dividends were $6,500. It did not sell or retire any property, plant, and equipment during the year. |
| The company’s net cash used in investing activities is: |
| $37,800 | |
| $28,000 | |
| $60,000 | |
| $4,000 |