Opt_Prob_Solutions_chap_13_ProblemSet

Opt_Prob_Solutions_chap_13_ProblemSet - HA 223 Chapter 13...

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Chapter 13 Optional Problems P13–1. Req.1 Related Cash Balance sheet at December 31 Flow Section 2004 2003 Change Δ in Cash Cash $68,000 $65,000 +3,000 10 Net increase in cash O Accounts receivable 15,000 22,000 -7,000 3 Add to net income the decrease in A/R O Merchandise inventory 22,000 18,000 +4,000 4 Subtract from net income the increase in Inventory I Property and equipment 210,000 150,000 +60,000 7 Payment in cash for equipment O Less: Accumulated depreciation (60,000) (45,000) -15,000 2 Add to NI because depreciation expense does not affect cash $255,000 $210,000 O Accounts payable $8,000 $19,000 -11,000 5 Subtract from net income the decrease in Accounts Payable O Wages payable 2,000 1,000 +1,000 6 Add to net income the increase in Wages payable F Note payable, long-term 60,000 70,000 -10,000 8 Cash used for repayment of note principal F Contributed capital 100,000 75,000 +25,000 9 Issuance of stock for cash O,F Retained earnings 85,000 45,000 +40,000 1 Increased for net income amount of $45,000 $255,000 $210,000 Income statement for 2004 Sales $195,000 Cost of goods sold
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Opt_Prob_Solutions_chap_13_ProblemSet - HA 223 Chapter 13...

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