Daugherty Company”s comparative balance sheet and income statement for last year appear below:
|
Statement of Financial Position |
||
|
|
Ending |
Beginning |
|
|
Balance |
Balance |
|
Cash |
$ 7,000 |
$ 21,000 |
|
Accounts receivable |
71,000 |
47,000 |
|
Inventory |
62,000 |
44,000 |
|
Prepaid expenses |
2,000 |
9,000 |
|
Long term investments |
310,000 |
240,000 |
|
Plant and equipment |
370,000 |
370,000 |
|
Accumulated depreciation |
(214,000) |
(186,000) |
|
Total assets |
$608,000 |
$545,000 |
|
Accounts payable |
$ 69,000 |
$ 48,000 |
|
Accrued liabilities |
2,000 |
17,000 |
|
Taxes payable |
28,000 |
13,000 |
|
Bonds payable |
140,000 |
170,000 |
|
Deferred taxes |
27,000 |
17,000 |
|
Common stock |
90,000 |
70,000 |
|
Retained earnings |
252,000 |
210,000 |
|
Total liabilities and owners’ equity |
$608,000 |
$545,000 |
|
Income Statement |
|
|
Sales |
$940,000 |
|
Less cost of goods sold |
510,000 |
|
Gross margin |
430,000 |
|
Less operating expenses |
270,000 |
|
Net operating income |
160,000 |
|
Less income taxes |
48,000 |
|
Net income |
$112,000 |
The company declared and paid $70,000 in cash dividends during the year.
Required:
a. Construct in good form the operating activities section of the company”s statement of cash flows for the year.
b. Construct in good form the investing activities section of the company”s statement of cash flows for the year.
c. Construct in good form the financing activities section of the company”s statementof cash flows for the year.