The Changes in Each Balance Sheet Account for Carver Corporation

question 39

Essay

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: 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.

---

Definitions:

Budgeted Amounts

Estimated financial figures planned for a certain period, including revenues and expenses.

Percent Differences

A measure representing the difference between two values as a percentage of one of the values.

Net Income

Net Income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's actual profitability.

Net Sales

The total revenue from sales minus returns, allowances, and discounts.