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	$	3,300		$	24,840
Accounts receivable		90,500			72,420
Inventory		42,900			51,230
Prepaid expenses		9,810			16,350
Long-term investments		254,400			206,000
Property, plant, and equipment		551,050			513,600
Less accumulated depreciation		348,800			315,650
Total assets	$	603,160		$	568,790
Accounts payable	$	9,810		$	27,500
Accrued liabilities		24,720			17,850
Income taxes payable		51,900			48,760
Bonds payable		164,800			210,000
Common stock		157,000			140,000
Retained earnings		194,930			124,680
Total liabilities and stockholders' equity	$	603,160		$	568,790

Income Statement
Sales	$	918,000
Cost of goods sold		459,000
Gross margin		459,000
Selling and administrative expense		283,500
Net operating income		175,500
Income taxes		41,300
Net income	$	134,200

The company declared and paid $63,950 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