Exhibit 21-3
The Travis Company uses the spreadsheet method for completing the statement of cash flows. The balance sheet accounts and other information related to those accounts are presented below for Travis Company: Additional information related to 2017 activities:
Additional information related to 2017 activities:
1. Net loss for 2017 was $40,000.
2. Cash dividends of $12,000 were declared and paid in 2017.
3. 4,000 shares of common stock were issued to bondholders converting bonds payable into common stock.
4. A long-term investment was sold for $100,000 cash.
5. Equipment costing $100,000 and having accumulated depreciation of $30,000 was sold for
$50,000 cash.
-Refer to Exhibit 21-3. Net cash provided used) in the operating activities section of Travis's 2017 statement of cash flows was
A) $(40,000).
B) $ 50,000.
C) $ 52,000.
D) $ 56,000.

Question

Exhibit 21-3
The Travis Company uses the spreadsheet method for completing the statement of cash flows. The balance sheet accounts and other information related to those accounts are presented below for Travis Company:  Additional information related to 2017 activities:
Additional information related to 2017 activities:
1. Net loss for 2017 was $40,000.
2. Cash dividends of $12,000 were declared and paid in 2017.
3. 4,000 shares of common stock were issued to bondholders converting bonds payable into common stock.
4. A long-term investment was sold for $100,000 cash.
5. Equipment costing $100,000 and having accumulated depreciation of $30,000 was sold for
$50,000 cash.
-Refer to Exhibit 21-3. Net cash provided used) in the operating activities section of Travis's 2017 statement of cash flows was
A) $(40,000). 
B) $ 50,000. 
C) $ 52,000. 
D) $ 56,000.

Quizplus · Accepted Answer

Net income was $50,000. Depreciation expense was $6,000. The change in net working capital was a decrease of $2,000. Net cash provided by operating activities was $50,000 + $6,000 - $2,000 = $54,000.

Exhibit 21-3 the Travis Company Uses the Spreadsheet Method for Completing the Completing