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

question 59

Essay

Diaz Company had the following comparative balance sheet information at the end of Year 2 and Year 1:
Diaz reported net income for Year 2 of $40,000. There were no sales or disposals of property, plant, and equipment during the year. Diaz uses the indirect method to prepare the statement of cash flows.Calculate Diaz's cash flow from financing activities for Year 2. Diaz Company
Comparative Balance Sheets
$$\begin{array}{l}\begin{array} {| l | l | l | } \hline &2013&2014\\\hline \text {Cash }&\$ 30,000&\$28,000 \\\hline \text {Accounts receivable}&48,000&50,000 \\\hline \text {Inventory }& 158,000&156,000\\\hline \text {Prepaid insurance }&10,000&8,000\\\hline \text {Property, plant and equipment }&70,000&60,000\\\hline \text {Accumulated depreciation }&(14,000)&(10,000)\\\hline \text {Total }&\$302,000&\$292,000\\\hline \text { }&\\\hline \text { Accounts payable } &\$ 14,000& \$ 18,000\\\hline \text { Bonds payable } &90,000&120,000\\\hline \text {Common stock } & 140,000&120,000\\\hline \text { Retained earnings }&58,000&34,000 \\\hline \text { Total } &\$ 302,000&\$ 292,000\\\hline\end{array}\end{array}$$

---

Definitions:

Acetylcholine

A neurotransmitter in both the central and peripheral nervous systems that plays an important role in muscle contraction and sensory processing.

Excitatory Neurotransmitter

A type of neurotransmitter that promotes the generation of an electrical signal called an action potential in receiving neurons.

Glutamate

An amino acid that functions as the major excitatory neurotransmitter in the vertebrate brain

All-Or-None Response

The principle that no variation exists in the strength of a single action potential; only a stimulus strong enough to depolarize the membrane to its critical threshold level results in transmission of an action potential.