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The Changes in Each Balance Sheet Account for Carver Corporation

Question 51

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The changes in each balance sheet account for Carver Corporation during the year just completed are as follows:
 The changes in each balance sheet account for Carver Corporation during the year just completed are as follows:    Carver Corporation's income statement for the year just ended shows the following:   \begin{array}{lr} \text {Sales. }&\$ 350,000 \\ \text {Cost of goods sold }&190,000 \\ \text { Gross margin}&160,000 \\ \text {Selling and administrative expense }&158,000 \\ \text { Net income}&\$ 2,000 \end{array}  The company did not dispose of any property,plant,and equipment,buy any long-term investments,issue any bonds payable,or repurchase any of its own common stock during the year.Carver Corporation uses the direct method to construct its statement of cash flows. Required: a.Determine the sales adjusted to the cash basis. b.Determine the cost of goods sold adjusted to the cash basis. c.Determine the selling and administrative expenses adjusted to a cash basis. d.Determine the net cash provided by (used in)operating activities. e.Determine the net cash provided by (used in)investing activities. f.Determine the net cash provided by (used in)financing activities. Carver Corporation's income statement for the year just ended shows the following:
Sales. $350,000Cost of goods sold 190,000 Gross margin160,000Selling and administrative expense 158,000 Net income$2,000\begin{array}{lr}\text {Sales. }&\$ 350,000 \\\text {Cost of goods sold }&190,000 \\\text { Gross margin}&160,000 \\\text {Selling and administrative expense }&158,000 \\\text { Net income}&\$ 2,000\end{array} The company did not dispose of any property,plant,and equipment,buy any long-term investments,issue any bonds payable,or repurchase any of its own common stock during the year.Carver Corporation uses the direct method to construct its statement of cash flows.
Required:
a.Determine the sales adjusted to the cash basis.
b.Determine the cost of goods sold adjusted to the cash basis.
c.Determine the selling and administrative expenses adjusted to a cash basis.
d.Determine the net cash provided by (used in)operating activities.
e.Determine the net cash provided by (used in)investing activities.
f.Determine the net cash provided by (used in)financing activities.

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