Question

Illies Corporation's comparative balance sheet appears below: The company's net income (loss) for the year was $5,000 and its cash dividends were $4,000. The total dollar amount of all of the items that would be classified as uses when compiling a simplified statement of cash flows is: Select one: a. $7,000 b. $40,000 c. $29,000 d. $33,000

Answer 1

Answer:

d. $33,000

Explanation:

net cash provided (used in) by operating activities + net cash provided (used in) financing activities

net cash provided by operating activities

net income                                           $5,000

adjustments to net income:

depreciation expense                       $29,000

decrease in accounts receivable       $2,000

decrease in inventory                         $2,000

increase in taxes payable                   $4,000

decrease in accounts payable           -$1,000

decrease in wages payable              -$2,000

decrease in notes payable                -$3,000  

net cash flow from operating cash flows $36,000

net cash provided by financing activities

issuance of common stock                $1,000

dividends paid                                   -$4,000    

net cash flow from financing activities -$3,000

items classified as uses = $36,000 - $3,000 = $33,000