Reference no: EM131287991

1. McCorey Corporation recorded the following events last year:

Repurchase by the company of its own common stock $37,000

Sale of long-term investment $56,000

Interest paid to lenders $13,500

Dividends paid to the company's shareholders $66,000

Collection by McCorey of a loan made to another company $42,000

Payment of taxes to governmental bodies $23,500

On the statement of cash flows, some of these events are classified as operating activities, some are classified as investing activities, and some are classified as financing activities. Based solely on the information above, the net cash provided by (used in) investing activities on the statement of cash flows would be:

$98,000

$(10,500)

$32,000

$(18,500)

2. Financial statements of Rukavina Corporation follow:

Rukavina Corporation Comparative Balance

Assets: Ending Balance Beginning Balance

Cash and cash equivalents $31 $28

Accounts receivable 92 79

Inventory 48 38

Property, plant and equipment 633 550

Less: accumulated depreciation 349 294

Total assets $455 $401

Liabilities and stockholders' equity:

Accounts payable $48 $66

Bonds payable 130 180

Common stock 94 79

Retained earnings 183 76

Total liabilities and stockholders' equity $455 $401

Income Statement

Sales $740

Cost of goods sold 406

Gross margin 334

Selling and administrative expenses 125

Net operating income 209

Income taxes 75

Net income $134

Cash dividends were $27. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows. The net cash provided by (used in) investing activities for the year was:

$15

$(83)

$(50)

$(27)

3. Alcoser Corporation's most recent balance sheet appears below:

Comparative Balance Sheet

Assets Ending Balance Beginning Balance

Cash and cash equivalents $34 $29

Accounts receivable 32 36

Inventory 53 66

Property, plant and equipment 554 480

Less accumulated depreciation 208 206

Total assets $465 $405

Liabilities and stockholders’ equity:

Accounts payable $41 $50

Accrued liabilities 17 16

Income taxes payable 28 30

Bonds payable 217 200

Common stock 75 70

Retained earnings 87 39

Total liabilities and equity $465 $405

Net income for the year was $60. Cash dividends were $12. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows. The net cash provided by (used in) investing activities for the year was:

$74

($74)

($72)

$72