Laux Company had the following Income Statement for 2018 and Balance sheets as of December 31, 2017 and 2018. Determine the net cash provided by or used for operating activities for 2018, the cash provided by or used for investing activities, and the cash provided by or used for financing activities.
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Laux Company |
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Income Statement |
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For the year ended December 31, 2018 |
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Sales |
$418,100 |
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Cost of goods sold |
210,000 |
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Gross margin |
208,100 |
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Operating expenses |
52,000 |
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Income from operations |
156,100 |
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Loss on sale of equipment* |
(2,000) |
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Income before taxes |
154,100 |
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Income tax expense |
22,000 |
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Net income |
$132,100 |
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Laux Company |
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Balance Sheet |
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December 31,2018 |
December 31,2017 |
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Assets |
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Cash |
146,300 |
43,200 |
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Accounts receivable |
73,200 |
75,200 |
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Merchandise inventory |
60,000 |
59,000 |
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Property and equipment |
320,000 |
310,000 |
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Less: Accumulated depreciation |
(100,000) |
(120,000) |
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|
499,500 |
367,400 |
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Accounts payable |
51,000 |
44,700 |
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Wages payable |
2,000 |
2,200 |
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Note payable, long-term |
73,000 |
77,000 |
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Contributed capital |
103,100 |
90,100 |
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Retained earnings |
270,400 |
153,400 |
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499,500 |
367,400 |
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*Laux sold equipment for $3,000. It had an original cost of $35,000 and accumulated depreciation of $30,000. There was a loss of $2,000 recognized on the sale. Laux sold stock for $13,000 and paid dividends of $15,100. Show dividends as a financing activity (rather than an operating activity).
What was depreciation expense?
What were acquisitions?
I will evaluate the following answers based upon your answers (correct or incorrect) to the two previous questions.
Cash provided by (if positive) or cash used for (if negative) operating activities:
Cash provided by (if positive) or cash used for (if negative) investing activities:
Cash provided by (if positive) or cash used for (if negative) financing activities:
