2A4D MADDEN CORPORATION’S CONTROLLER HAS GATHERED THE FOLLOWING INFOR...
101.
CSO: 2A4d
LOS: 2A4d
Madden Corporation’s controller has gathered the following information as a basis for
preparing the Statement of Cash Flows. Net income for the current year was $82,000.
During the year, old equipment with a cost of $60,000 and a net carrying value of
$53,000 was sold for cash at a gain of $10,000. New equipment was purchased for
$100,000. Shown below are selected closing balances for last year and the current year.
Last Year
Current Year
Cash
$ 39,000
$ 85,000
Accounts receivable net
43,000
37,000
Inventories
93,000
105,000
Equipment
360,000
400,000
Accumulated depreciation - equipment
70,000
83,000
Accounts payable
22,000
19,000
Notes payable
100,000
100,000
Common stock
250,000
250,000
Retained earnings
93,000
175,000
Madden’s cash inflow from operating activities for the current year is
a.
$63,000.
b.
$73,000.
c.
$83,000.
d.
$93,000.