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17 July, 19:44

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

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  1. 17 July, 20:21
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    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
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