Question

Carr Corporation's comparative balance sheet and income statement for last year appear below:

Comparative Balance Sheet
	Ending Balance			Beginning Balance
Cash and cash equivalents	$	3,270		$	25,300
Accounts receivable		88,800			78,100
Inventory		39,800			49,820
Prepaid expenses		9,630			15,450
Long-term investments		247,200			216,000
Property, plant, and equipment		566,500			523,200
Less accumulated depreciation		345,600			324,500
Total assets	$	609,600		$	583,370
Accounts payable	$	9,720		$	25,750
Accrued liabilities		25,440			18,190
Income taxes payable		51,900			50,600
Bonds payable		171,200			206,000
Common stock		158,000			140,000
Retained earnings		193,340			142,830
Total liabilities and stockholders' equity	$	609,600		$	583,370

Income Statement
Sales	$	892,500
Cost of goods sold		472,500
Gross margin		420,000
Selling and administrative expense		297,000
Net operating income		123,000
Income taxes		42,500
Net income	$	80,500

The company declared and paid $29,990 in cash dividends during the year. It did not dispose of any property, plant, and equipment during the year.

Required:

Prepare the operating activities section of the company's statement of cash flows for the year using the direct method. (Enter all amounts as positive values except for adjustments to cash basis that are deducted.)

Answer 1