Mattix Corporation's Balance Sheet and Income Statement Appear Below

question 80

Essay

Mattix Corporation's balance sheet and income statement appear below: The company sold equipment for $20 that was originally purchased for $7 and that had accumulated depreciation of $1. It paid a cash dividend during the year and did not issue any bonds payable or repurchase any of its own common stock.
Required:
Determine the net cash provided by (used in) operating activities for the year using the indirect method.

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Definitions:

Insurance Policy

A contract between an insurer and a policyholder stipulating the terms under which the insurer agrees to compensate the insured for specific losses.

Adjusting Entry

An accounting entry made into a journal at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Property Tax

A tax assessed on real estate by the local government and based on the property's value.

Adjusting Journal Entry

A journal record used to adjust the balances in various ledger accounts to more accurately reflect income and expenses for the period.