Question

128. Comparative balance sheets and the income statements for Ellis Corporation are presented below:

Comparative Balance Sheet
	Ending Balance			Beginning Balance
Assets:
Current assets:
Cash and cash equivalents	$	45,900		$	31,500
Accounts receivable		39,900			42,800
Inventory		71,000			62,400
Total current assets		156,800			136,700
Long-term investments		176,600			212,000
Property, plant, and equipment		286,300			162,000
Less accumulated depreciation		57,200			53,500
Total assets	$	562,500		$	457,200
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable	$	38,200		$	42,800
Accrued liabilities		25,400			30,600
Income taxes payable		15,900			21,800
Total current liabilities		79,500			95,200
Bonds payable		132,000			32,700
Total liabilities		211,500			127,900
Stockholders’ equity:
Common stock		306,800			275,400
Retained earnings		44,200			53,900
Total stockholders' equity		351,000			329,300
Total liabilities and stockholders' equity	$	562,500		$	457,200

Income Statement
Sales	$	162,000
Cost of goods sold		78,800
Gross margin		83,200
Selling and administrative expense		16,500
Net operating income		66,700
Loss on sale of investment		2,500
Income before taxes		64,200
Income taxes		22,900
Net income	$	41,300

The following additional information is available for the year:

* During the year, the company sold long-term investments for $32,900 that had been purchased for $35,400.

* The company did not sell any property, plant, and equipment during the year or repurchase any of its own common stock.

* All sales were on credit.

* The company paid a cash dividend of $51,000.

* The company paid cash to retire $16,200 of bonds payable.

Required:

a. Using the indirect method, determine the net cash provided by (used in) operating activities.

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

c. Using the net cash provided by (used in) operating activities amount from either part a or b, prepare a statement of cash flows.

Answer 1