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Take home exam I solution - Cash flows from Financing Cash...

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Entries Debit 1 Cash 300,000 Accounts Receivable 100,000 Sales 2 Cost of Good Sold 200,000 Cash Inventory Accounts Payable 3 Other operating expense 77,500 Other Payables 10,000 Cash 4 Depreciation Expense 20,000 Accumulated Depreciation 5 Insurance Expense 7,000 Prepaid Insurance 5,000 Cash 6 Interest expense 2,500 Cash 7 Land 25,000 Notes Payable 8 Cash 8,000 Loss on sale of land 2,000 Land 9 Equipment 70,000 Cash 10 Cash 29,000 Accumulated Depreciation 6,000 Gain on Sale of Plant and equipment Equipment 11 Cash 60,000 Common stock 12 Didends declared 10,000 Dividends Payable Cash Smoot Company Cash Flow statement (Direct Method) For 2002
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Cash Flows from Operations: Cash collected due to sales 300,000 Cash paid to buy inventory (20,000) Cash paid for operating expense (87,500) Cash paid for insurance expense (12,000) Cash paid for Interest expense (2,500) Net cash used by operations Cash Flows from Investing: Cash from sales of land 8,000 Cash paid to buy equipment (70,000) Cash paid from sales of equipment 29,000 Net cash provided by investing
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Unformatted text preview: Cash flows from Financing: Cash from issue of commonstock 60,000 Cash dividends paid 5,000 Net cash provided by Financing Increase (Decrease) in cash and cash equivalent Cash and Cash equivalent beg of yr Schedule of Non cash investing and financing activities Smoot Company Cash Flow statement (Indirect Method) For 2002 Cash flow Operations: Net Income (loss) 96,000 Non cash Expense (Revenue) Losses (gain) Depreciation Expense 20,000 Loss on sale of land 2,000 Gain on sale of plant and equipment (5,000) Changes in asset and liabilities related to operations Accounts Receivable (100,000) Inventory (130,000) Prepaid insurance (5,000) Accounts Payable 50,000 Other payables (10,000) Net cash provided (used) by operations Credit OA 400,000 OA 20,000 130,000 50,000 OA 87,500 NA 20,000 OA 12,000 OA 2,500 IA 25,000 IA 10,000 IA 70,000 IA 5,000 30,000 FA 60,000 FA 5,000 5,000 178,000 (33,000) 65,000 210,000 12,000 (82,000)...
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