Friday, October 10, 2014

What is Samarium\"s net cash provided (used) by investing activities?

Samarium Retail Corporation\"s most recent comparative Balance Sheet is as follows:

Assets

Ending

Beginning

Cash

$ 51,000

$ 64,000

Accounts receivable, net

83,000

41,000

Merchandise inventory

96,000

87,000

Equipment

120,000

 120,000

Accumulated depreciation

(65,000)

 (50,000)

Total assets

$285,000

 $262,000

Liabilities and Stockholders’ Equity

 

 

 

Accounts payable

$ 12,000

$ 38,000

 

Taxes payable

1,000

3,000

 

Notes payable

30,000

5,000

 

Common stock

100,000

80,000

 

Retained earnings

142,000

136,000

 

Total liabilities and stockholders’ equity

$285,000

$262,000

 

      

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

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