Comparative Balance Sheets and the Income Statements for Ellis Corporation

question 197

Essay

Comparative balance sheets and the income statements for Ellis Corporation are presented below:
The following additional information is available for the year:* During the year, the company sold long-term investments for $42,300 that had been purchased for $44,800.* The company did not sell any property, plant, and equipment during the year or repurchase any of its own common stock.* All sales were on credit.* The company paid a cash dividend of $7,900.* The company paid cash to retire $16,200 of bonds payable.
Required:a. Using the indirect method, determine the net cash provided by (used in) operating activities.b. Using the direct method, determine the net cash provided by (used in) operating activities.c. Using the net cash provided by (used in) operating activities amount from either part a or b, prepare a statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)

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Definitions:

Volts

The unit of measurement for electric potential or electromotive force, indicative of how much force pushing electric current through a circuit.

Check Valve

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Vacuum Power Brake

A brake booster that uses a vacuum to multiply the force the driver applies to the brake pedal, reducing effort and improving response.

Vacuum Booster

A device that uses engine vacuum to increase the force applied to the brake pedal, thereby enhancing braking power and efficacy.