Question

Use the following comparative balance sheets and additional information to answer questions (1) through (4). MKH Company Comparative Balance Sheets For the year ended December 31 20X1 20X0 Change Current assets Cash $324,700 $217,600 $107,100 Accounts receivable 132,600 165,200 (32,600) Inventory 175,100 137,200 37,900 Prepaid rent 25,500 14,400 11,100 Total current assets $657,900 $534,400 $123,500 Long-term assets Land $326,400 $345,600 ($19,200) Equipment (net) 321,300 356,300 (35,000) Total long-term assets $647,700 $701,900 $(54,200) Total assets $1,305,600 $1,236,300 $69,300 Current liabilities Accounts payable $145,800 $131,200 $14,600 Salaries payable 18,700 4,800 13,900 Interest payable 32,300 27,200 5,100 Total current liabilities $196,800 $163,200 $33,600 Long-term liabilities Bonds payable $321,400 $469,800 ($148,400) Stockholders' equity Common stock $535,800 $434,900 $100,900 Retained earnings 251,600 168,400 83,200 Total liabilities and equity $1,305,600 $1,236,300 $69,300 Additional Information for MKH Co. in 20X1: 1. Net income for year 20X1 was $216,000. 2. The company declared and paid a cash dividend of $132,800. 3. The only posting to the net equipment account was for depreciation expense of $35,000 (i.e., no equipment was sold). 4. MKH sold land worth $19,200 for $8,000 cash. 5. The company retired $148,400 worth of bonds payable at the beginning of the year. 1. What was the loss on the sale of land recorded by MKH Company in 20X1? $11,200 $8,000 $0 $19,200 2. What were MKH Company's cash flows from (for) operating activities in 20X1? $268,200 ($180,300) $279,400 $233,100 3. What were MKH Company's cash flows from (for) investing activities in 20X1? $11,200 $0 $19,200 $8,000 4. What were MKH Company's cash flows from (for) financing activities in 20X1? ($47,500) ($97,100) ($180,300) ($116,500)

Answer 1