Question

Carriveau Corporation's most recent balance sheet appears below:

Comparative Balance Sheet
	Ending Balance			Beginning Balance
Assets:
Current assets:
Cash and cash equivalents	$	41		$	30
Accounts receivable		38			26
Inventory		51			65
Total current assets		130			121
Property, plant, and equipment		772			551
Less accumulated depreciation		283			262
Net property, plant, and equipment		489			289
Total assets	$	619		$	410
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable	$	56		$	71
Accrued liabilities		21			18
Income taxes payable		44			36
Total current liabilities		121			125
Bonds payable		110			166
Total liabilities		231			291
Stockholders’ equity:
Common stock		86			81
Retained earnings		302			38
Total stockholders’ equity		388			119
Total liabilities and stockholders' equity	$	619		$	410

Net income for the year was $325. Cash dividends were $61. The company did not sell or retire any property, plant, and equipment during the year. The net cash provided by (used in) operating activities for the year was:

Answer 1

Correct answer-----------$344

Working

Statement of Cash Flows (Partial)
Cash flows from operating activities:
Net income		$ 325.00
Adjustments to reconcile net income to net cash from operating activities
Depreciation expense	$         21.00
Increase in accounts receivable	$          (12.00)
Decrease in inventory	$            14.00
Decrease in accounts payable	$        (15.00)
Increase in Accrued liabilities	$          3.00
Increase in Income taxes payable	$          8.00
		$    19.00
Net cash from operating activities		$ 344.00

Depreciation expense is the difference between Accumulated depreciation accounts in two years