Diaz Company Had the Following Comparative Balance Sheet Information at the End

question 78

Essay

Diaz Company had the following comparative balance sheet information at the end of Year 2 and Year 1:
$\begin{array}{c}\text {Diaz Company}\\\text { Comparative Balance Sheets}\\\begin{array}{lll}\\\text {Cash}\\\text {Accounts receivable}\\\text {Inventory}\\\text {Prepaid insurance}\\\text {Property, plant and equipment}\\\text {Accumulated depreciation}\\\text {Total}\\\text {Accounts payable}\\\text {Bonds payable}\\\text {Common stock}\\\text {Retained earnings}\\\text {Total}\end{array}\begin{array}{cc} \text { Year } 2 & \text { Year } 1 \\ \$ 30,000& \$ 28,000 \\ 48,000 & 50,000 \\ 158,000 & 156,000\\ 10,000& 8,000 \\ 70,000 & 60,000 \\ (14,000) & (10,000) \\\$ 302,000 & \$ 292,000 \\\$ 14,000 & \$ 18,000 \\ 90,000 & 120,000 \\140,000 & 120,000 \\58,000 & 34,000 \\\$302,000 &\$292,000 \\\end{array}\end{array}$
Diaz reported net income for Year 2 of $40,000.No property,plant,and equipment were disposed of during the year.Diaz uses the indirect method to prepare the statement of cash flows.
Calculate Diaz's cash flow from investing activities for Year 2.

---

Definitions:

Sum Squares Treatments (SST)

The total variation attributed to different treatments in an analysis of variance (ANOVA) context, measuring the difference between treatment means and the overall mean.

Mean Square Treatments

In the context of ANOVA, a measure of variance among the means of different groups, calculated by dividing the sum of squares due to treatment by the degrees of freedom for treatment.

F-test

A statistical test used to compare two variances and ascertain if they come from populations with equal variances.

Total Variation

Refers to the overall difference between individual values and the mean within a dataset, capturing the spread.