Chapter 12 ex 6

Chapter 12 ex 6 - $ 75,000 Add: Increase in inventory 7,000...

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1. Operating activities section of the statement of cash flows: LABRADOR COMPANY PARTIAL STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2007 Cash Flows from Operating Activities Cash collected from customers $ 102,000 1 Cash payments for: Inventory $ (79,000) 2 General and administrative (6,000) 3 Interest (3,500) 4 Taxes (3,500 ) 5 Total Cash Payments $ (92,000 ) Net Cash Provided by Operating Activities $ 10,000 Footnotes: 1 Cash collections from customers: Sales revenue $ 100,000 Add: Decrease in accounts receivable 2,000 Cash collections $ 102,000 2 Payments for inventory: Cost of goods sold
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Unformatted text preview: $ 75,000 Add: Increase in inventory 7,000 Less: Increase in accounts payable (3,000 ) Cash payments $ 79,000 3 For general and administrative expenses: General and administrative expense $ 8,000 Less: Decrease in office supplies (3,000) Add: Decrease in salaries and wages payable 1,000 Cash payments $ 6,000 4 For interest: Interest expense $ 3,000 Add: Decrease in interest payable 500 Cash payments $ 3,500 5 For taxes: Income tax expense $ 5,000 Less: Increase in income taxes payable (1,500 ) Cash payments $ 3,500...
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This note was uploaded on 04/13/2008 for the course ACCT 201 taught by Professor Scconline during the Summer '07 term at UNL.

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Chapter 12 ex 6 - $ 75,000 Add: Increase in inventory 7,000...

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