Selected Data from the Financial Statements for the Years Ended

question 150

Essay

Selected data from the financial statements for the years ended December 31, Year 2 and Year 1, are presented below:
$$\begin{array} { l r r } & \text { Year 2 } & \text { Year 1 } \\ \text { Property, plant, and equipment }& \$ 14,100 & \$ 12,200 \\\text { Accumulated depreciation }& 4,900 & 4,700 \\\text { Investments } & 450 & 240 \\\text { Short-term debt } & 55 & 57 \\ \text { Lang-term debt }& 1,500 & 1,200 \\\text { Common shares } & 597 & 567 \\\text { Share Repurchase--common shares } & ( 21 ) & ( 21 ) \\\text { Retained earnings } & 3,522 & 3,426 \\\text { Net income } &770&713\end{array}$$ The following additional information was obtained from the company's records:
1. Cash addituns to property, plant, and equpment during Year 2 were $2,300. An additional \$250 of plant assets were acquired through debt in anoncash transaction. Depreciation expense for Year 2 was $400. Gains an disposals of property, plant and equipment during Year 2 were $40.

2. The cash proceeds from the sale of investments in Year 2 were $\$ 120$ . There was a $\$ 30$ gain an the sale of the investments.

3. Praceeds fram lang-term debt issued during Year 2 were $\$ 200$ .

4. The issuance of common shares totalled $\$ 30$ in Year 2.
-Refer to Maritime Marine Services.What was the amount of cash dividends paid during Year 2?

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Definitions:

Money Supply

Refers to the total amount of money available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Money Supply Growth

The rate at which the amount of money available in an economy increases over a specific period of time.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power over time.

Adverse Supply Shock

An unexpected event that suddenly decreases the supply of a commodity or service, potentially leading to higher prices and lower quantity available.