Samarium Retail Corporation”s most recent comparative Balance Sheet is as follows:
|
Assets |
Ending |
Beginning |
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|
Cash |
$ 51,000 |
$ 64,000 |
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|
Accounts receivable, net |
83,000 |
41,000 |
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|
Merchandise inventory |
96,000 |
87,000 |
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|
Equipment |
120,000 |
120,000 |
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|
Accumulated depreciation |
(65,000) |
(50,000) |
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|
Total assets |
$285,000 |
$262,000 |
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|
Liabilities and Stockholders’ Equity |
|
|
|
||
|
Accounts payable |
$ 12,000 |
$ 38,000 |
|
||
|
Taxes payable |
1,000 |
3,000 |
|
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|
Notes payable |
30,000 |
5,000 |
|
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|
Common stock |
100,000 |
80,000 |
|
||
|
Retained earnings |
142,000 |
136,000 |
|
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|
Total liabilities and stockholders’ equity |
$285,000 |
$262,000 |
|
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Samarium”s net income was $46,000. No direct exchange transactions occurred at Samarium during the year. No equipment was sold or purchased. Cash dividends of $40,000 were declared and paid. Samarium uses the indirect method to prepare its statement of cash flows.
1 What is Samarium”s net cash provided (used) by operating activities?
A) $(18,000)
B) $(33,000)
C) $69,000
D) $84,000
2. What is Samarium”s net cash provided (used) by investing activities?
A) $0
B) $(15,000)
C) $25,000
D) $45,000