Solved

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

Question 129

Essay

Diaz Company had the following comparative balance sheet information at the end of Year 2 and Year 1:
Diaz Company Comparative Balance SheetsCashAccounts receivableInventoryPrepaid insuranceProperty, plant and equipmentAccumulated depreciationTotalAccounts payableBonds payableCommon stockRetained earningsTotal Year 2 Year 1$30,000$28,00048,00050,000158,000156,00010,0008,00070,00060,000(14,000)(10,000)$302,000$292,000$14,000$18,00090,000120,000140,000120,00058,00034,000$302,000$292,000\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.

Correct Answer:

verifed

Verified

\[\begin{array} { l }
\text {...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents