The Dickinson Company Reported Net Income of $155,000 for the Current

question 34

Essay

The Dickinson Company reported net income of $155,000 for the current year. Depreciation recorded on buildings and equipment amounted to $65,000 for the year. In addition, a building with an original cost of $250,000 and accumulated depreciation of $190,000 on the date of the sale, was sold for $75,000. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
​ $\begin{array}{lrr}&\text { End of Year }&\text { Beginning of Year }\\\text { Cash } & \$ 20,000 & \$ 15,000 \\\text { Accounts receivable } & 19,000 & 32,000 \\\text { Inventories } & 50,000 & 65,000 \\\text { Accounts payable } & 12,000 & 18,000\end{array}$ Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.

---

Definitions:

Carpetbaggers

Derisive term for northern emigrants who participated in the Republican governments of the Reconstruction South.

Scalawags

A derogatory term used during the Reconstruction era to describe southern whites who supported the Republican Party's reconstruction policies.

Ku Klux Klan

A white supremacist hate group in the United States known for promoting white nationalism, anti-immigration, and – historically – the lynching of African Americans.

Terrorist Organization

A group that practices or advocates for the use of violence and terror, particularly against civilians, to achieve political, religious, or ideological objectives.