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

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 $ 30,600
Accounts receivable 39,500 40,800
Inventory 73,700 62,400
Total current assets 159,100 133,800
Long-term investments 165,200 208,000
Property, plant, and equipment 294,700 163,500
Less accumulated depreciation 53,000 51,500
Total assets $ 566,000 $ 453,800
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable $ 39,600 $ 43,200
Accrued liabilities 25,700 30,600
Income taxes payable 15,500 20,800
Total current liabilities 80,800 94,600
Bonds payable 132,000 30,600
Total liabilities 212,800 125,200
Stockholders’ equity:
Common stock 324,500 278,100
Retained earnings 28,700 50,500
Total stockholders' equity 353,200 328,600
Total liabilities and stockholders' equity $ 566,000 $ 453,800
Income Statement
Sales $ 160,500
Cost of goods sold 81,100
Gross margin 79,400
Selling and administrative expense 16,500
Net operating income 62,900
Loss on sale of investment 2,500
Income before taxes 60,400
Income taxes 24,000
Net income $ 36,400

The following additional information is available for the year:

* During the year, the company sold long-term investments for $40,300 that had been purchased for $42,800.

* 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 $58,200.

* The company paid cash to retire $15,300 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.

Solutions

Expert Solution

Cashflows direct - Workings

ekkarill92 answered 2 years ago
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