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Net cash provided by (used by) financing activities

Question 32: (2 points)
Daubenspeck Corporation's balance sheet and income statement appear below:

Comparative Balance Sheet
Ending Balance Beginning Balance
Assets:
Cash and cash equivalents $ 51 $ 44
Accounts receivable 94 61
Inventory 74 85
Plant and equipment 696 535
Accumulated depreciation ( 243) ( 221)
Total assets $672 $504

Liabilities and stockholders' equity:
Accounts payable $ 37 $ 25
Wages payable 17 11
Taxes payable 12 11
Bonds payable 163 226
Deferred taxes 20 21
Common stock 93 13
Retained earnings 330 197
Total liabilities and stockholders' equity $672 $504

Income Statement
Sales $1,124
Cost of goods sold 634
Gross margin 490
Selling and administrative expense 137
Net operating income 353
Gain on sale of plant and equipment 15
Income before taxes 368
Income taxes 110
Net income $ 258

Cash dividends were $28. The company sold equipment for $35 that was originally purchased for $27 and that had accumulated depreciation of $7. The net cash provided by (used by) financing activities for the year was:

($65)
$80
($28)
($11 )

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Solution Preview

Daubenspeck Corporation's balance sheet and income statement appear below:

Comparative Balance Sheet
Ending Balance Beginning Balance
Assets:
Cash and cash equivalents $ 51 $ 44
Accounts receivable 94 61
Inventory 74 85
Plant and equipment 696 535
Accumulated depreciation ( 243) ( 221)
Total assets $672 $504

Liabilities and stockholders' equity:
Accounts payable $ 37 $ 25
Wages payable 17 11
Taxes payable 12 11
Bonds payable 163 226
Deferred taxes 20 21
Common ...

Solution Summary

This provides the steps to calculate the net cash provided by (used by) financing activities

$2.19