ORIE_350_Homework__3_Spring_2008_answers

ORIE_350_Homework__3_Spring_2008_answers - ORIE 350...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ORIE 350 Homework #3 Due February 13, 2008 1. Construct a complete statement of cash flows for Newman Company, using the indirect method. Newman Company Statement of Cash Flows Year Ended Dec. 31, 2006 Cash from Operations Net Income $34,000 Depreciation Expense 15,500 Gain on Sale of Equipment (2,000) Net Cash Flow from Operations $47,500 Cash from Investing Sale of Equipment $8,500 Net Cash Flow from Investing $8,500 Cash from Financing None $0 Total Cash Flow $56,000 Cash, Dec. 31, 2005 20,000 Plus: Net Cash Flow 56,000 Cash, Dec. 31, 2006 76,000
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
On May 1, Year 1, Geary Co. reported the following accounts on its balance sheet: Current Assets Accounts Receivable – Gross $270,000 Less Allowance for Uncollectible Accounts (18,000) Accounts Receivable – Net $252,000 Record in journal form the following May transactions: a. Gross sales on account for the month of May were $1,300,000. Cash sales were $450,000. May 31, Year 1 Accounts Receivable 1,300,000 Cash 450,000 Sales Revenue 1,750,000 b. Collections from customers from sales on account total $1,250,000 during May. May 31, Year 1 Cash 1,200,000 Accounts Receivable 1,200,000 c. Write off of $32,000 of accounts receivable as uncollectible during May. May 31, Year 1 Allowance for Uncollectible Accts 32,000 Accounts Receivable 32,000 d. At month-end, an aging of the accounts indicated that $12,000 would be uncollectible. May 31, Year 1
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/10/2008 for the course ORIE 350 taught by Professor Callister during the Spring '08 term at Cornell University (Engineering School).

Page1 / 6

ORIE_350_Homework__3_Spring_2008_answers - ORIE 350...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online