Financial statements of Farnham Corporation follow: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents $ 30 $ 47 Accounts receivable 37 49 Inventory 41 52 Plant and equipment 611 573 Less accumulated depreciation 298 281 Total assets $421 $440 Liabilities and stockholders’ equity: Accounts payable $ 45 $ 33 Long-term debt 136 151 Common stock 56 48 Retained earnings 232 208 Total liabilities and stockholders’ equity $421 $440 Income Statement Sales $341 Cost of goods sold 212 Gross margin 129 Selling and administrative expense 99 Net operating income 30 Income taxes 2 Net income $ 28 Cash dividends were $4. The net cash provided by (used in) operations for the year was: $80 $60 $43 $35 The net cash provided by (used in) investing activities for the year was: ($21) $21 ($38) $38

Financial statements of Farnham Corporation follow:

Comparative Balance Sheet
	Ending Balance	Beginning Balance
Assets:
Cash and cash equivalents	$ 30	$ 47
Accounts receivable	37	49
Inventory	41	52
Plant and equipment	611	573
Less accumulated depreciation	298	281
Total assets	$421	$440
Liabilities and stockholders’ equity:
Accounts payable	$ 45	$ 33
Long-term debt	136	151
Common stock	56	48
Retained earnings	232	208
Total liabilities and stockholders’ equity	$421	$440

Income Statement
Sales	$341
Cost of goods sold	212
Gross margin	129
Selling and administrative expense	99
Net operating income	30
Income taxes	2
Net income	$ 28

Cash dividends were $4.

The net cash provided by (used in) operations for the year was:

	$80
	$60
	$43
	$35

Answer
$80
The net cash provided by (used in) investing activities for the year was:

	($21)
	$21
	($38)
	$38

Answer
($38)