Determine the net cash provided by operating activities

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Reference no: EM13944677

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


Comparative Balance Sheet
   
  End Balance   Beg Balance
       
Assets:      
Cash and cash equivalents  25   22
Accounts receivable  53   48
Inventory  50   56
Plant and equipment  532   430
Accumulated depreciation  -285   -261
Total assets  375   295
       
       
Liabilities and stockholders' equity:      
Accounts payable  39   38
Wages payable  20   24
Taxes payable  10   9
Bonds payable  71   100
Deferred taxes  15   19
Common stock  82   80
Retained earnings  138   25
Total liabilities and stockholders' equity 375   295
       
    Income Statement  
Sales    $954  
Cost of goods sold    606  
Gross margin    348  
Selling and administrative expense    162  
Net operating income    186  
Gain on sale of plant and equipment    10  
Income before taxes    196  
Income taxes    59  
Net income    137  

Cash dividends were $24. The company sold equipment for $ 10 that was originally purchased for $4 and that had accumulated depreciation of $4.

Required: Using the direct method, determine the net cash provided by (used by) operating activities.

Reference no: EM13944677

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