The following data for Larson Co. for the year ending December 31, Year 2, and the preceding year ended December 31, Year 1, are available: In addition to the balance sheet data, assume that: $\bullet$Equipment costing $125,000 was purchased for cash.$\bullet$Equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000.$\bullet$The stock was issued for cash.$\bullet$The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000.What are the net cash flows from operating, investing, and financing activities for Year 2?
A)operating: $112,000; investing: $110,000; financing: $20,000
B)operating: $112,000; investing: ($110,000); financing: $20,000
C)operating: $61,000; investing: ($110,000); financing: $71,000
D)operating: $144,000; investing: ($110,000); financing: ($12,000)

Question

The following data for Larson Co. for the year ending December 31, Year 2, and the preceding year ended December 31, Year 1, are available:   In addition to the balance sheet data, assume that: $\bullet$Equipment costing $125,000 was purchased for cash.$\bullet$Equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000.$\bullet$The stock was issued for cash.$\bullet$The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000.What are the net cash flows from operating, investing, and financing activities for Year 2?
A)operating: $112,000; investing: $110,000; financing: $20,000 
B)operating: $112,000; investing: ($110,000); financing: $20,000 
C)operating: $61,000; investing: ($110,000); financing: $71,000 
D)operating: $144,000; investing: ($110,000); financing: ($12,000)

Quizplus · Accepted Answer

The Answer of The following data for Larson Co. for the year ending December 31, Year 2, and the preceding year ended December 31, Year 1, are available:   In addition to the balance sheet data, assume that: $\bullet$Equipment costing $125,000 was purchased for cash.$\bullet$Equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000.$\bullet$The stock was issued for cash.$\bullet$The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000.What are the net cash flows from operating, investing, and financing activities for Year 2?
A)operating: $112,000; investing: $110,000; financing: $20,000 
B)operating: $112,000; investing: ($110,000); financing: $20,000 
C)operating: $61,000; investing: ($110,000); financing: $71,000 
D)operating: $144,000; investing: ($110,000); financing: ($12,000)

The Following Data for Larson Co ∙\bullet∙ Equipment Costing $125,000 Was Purchased for Cash

The Following Data for Larson Co $\bullet$ Equipment Costing $125,000 Was Purchased for Cash