ORIE_350_Homework__3_Spring_2008_answers - ORIE 350...

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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
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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
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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).

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ORIE_350_Homework__3_Spring_2008_answers - ORIE 350...

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