Week Six Assignment

Week Six Assignment - (22,500) 29 Net cash used for...

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HARRISON/HORNGREN, FINANCIAL ACCOUNTING 6E Problem 12-5A Name Anthony Arostegui Section ACCT212 A B C D E F G H 5 Part 1. 6 Genie Marketing, Inc. 7 Statement of Cash Flows 8 Year Ended December 31, 20X8 9 10 Cash flows from operating activities: 11 Net income $61,600 12 Adjustments to reconcile net income to 13 net cash provided by operating activities: 14 Depreciation $15,300 15 Increase in accounts receivable (3,400) 16 Decrease in interest receivable $300 17 Increase in inventories (4,400) 18 Decrease in prepaid expenses $500 19 Decrease in accounts payable (1,500) 20 Decrease in interest payable (400) 21 Increase in salary payable $700 22 Decrease in other accrued liabilities (600) 23 Increase in income tax payable $2,500 $9,000 24 Net cash provided by operating activities $70,600 25 26 Cash flows from investing activities: 27 Acquisition of land (25,100) 28 Acquisition of equipment
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Unformatted text preview: (22,500) 29 Net cash used for investing activities (47,600) 30 31 Cash flows from financing activities: 32 Payment of dividends (28,700) 33 Payment of note payable (10,000) 34 Issuance of common stock $8,800 35 Net cash used for financing activities (29,900) 36 Net decrease in cash (6,900) 37 Cash balance, December 31, 20X7 15,600 38 Cash balance, December 31, 20X8 $8,700 39 40 Part 2. 41 There are three different activities can genertate cash receipts and cash payments. 42 Being operating activites, investing activites and financing activities. These three 43 business activites are used to understand the meaning of cash flows. By the way 44 when net cash provided by operating activites conveys a more positive signal 45 not net cash used for operations, a company is doing good. 46 47 48 End of Problem...
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This note was uploaded on 04/25/2008 for the course ACCT 212 taught by Professor Williamblix during the Spring '08 term at DeVry NY.

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