Cavett Company's Comparative Balance Sheet and Income Statement for Last

question 34

Essay

Cavett Company's comparative balance sheet and income statement for last year appear below: The following additional information is available for the year:
* During the year,the company sold long-term investments with a cost of $38,000 when purchased for $33,000 in cash.
* All sales were on credit.
* The company paid a cash dividend of $25,000.
* The company did not dispose of any property,plant,and equipment,issue any bonds payable,or repurchase any of its own common stock during the year.
Required:
a.Using the direct method,determine the net cash provided by operating activities for the year.
b.Using the indirect method,determine the net cash provided by operating activities for the year.
c.Using the net cash provided by operating activities figure from either part a or b,prepare a statement of cash flows for the year.

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Definitions:

Syllogism

A form of logical reasoning where a conclusion is drawn from two given or assumed propositions (premises) with a common term.

Reasoning

The process of thinking about something in a logical way in order to form a conclusion or judgment.

Cognition

The cognitive activity of gaining knowledge and comprehension via thinking, experiencing, and sensory input.

Concepts

Mental categories that group objects, events, or ideas based on shared properties or characteristics.