Balance Sheets and Income Statements
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The following are balance sheets for Scott Company as of the end of the Years 1 and 2:
Balance Sheet
Year 2 Year 1
Cash 189 50
Accounts Receivable 950 750
Inventory 500 300
Prepaid Expenses 40 30
Plant assets 3,200 3,000
Accumulated depreciation (1,740) (1,800)
Total Assets 3,139 2,330
Accounts Payable 350 150
Interest payable 18 24
Taxes Payable 370 320
Bonds payable 400 240
Paid-In capital 1,200 900
Retained earnings 801 696
Total liabilities and equity 3,139 2,330
The income statement for Year 2 was as follows:
Sales 1,800
Cost of goods sold (1,200)
Gross margin 600
Depreciation (240)
General expenses (60)
Operating income 300
Interest expense (30)
Income before taxes 270
Tax expense (90)
Net Income 180
The following is also available for Year 2:
a. Plant assets were sold for their book value of $700. The assets had originally cost $1,000.
b. Cash dividends of $75 were paid during the year.
c. All account payable relate to inventory purchases.
d. All purchases of plant assets were cash transactions.
Refer to Scott Company. Determine the amount of cash provided by Scott's operating activities.
Refer to Scott Company. Determine the amount of cash provided (or used) by Scott's investing activities.
Refer to Scott Company. Determine the amount of cash provided (or used) by Scott's financing activities.
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