Chapter 02 Homework 2

Chapter 02 Homework 2 - Professor Gordon ACCT151 4...

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Professor Gordon ACCT151 4 September 2008 Chapter 2 Homework 2 P10, E7, P8, D1, D5 P10) working capital = current assets – current liabilities Coca-Cola: $2,786 million PepsiCo: $2,270 million current ratio: = current assets / current liabilities Coca-Cola: 1.49 PepsiCo: 1.33 Coca-Cola is slightly more liquid because it has more capital with which they can pay lenders. E7) 1. O 2. O 3. O 4. I 5. F 6. F 7. I 8. I P8) COLORADO CORPORATION STATEMENT OF CASH FLOW FOR THE YEAR ENDED DECEMBER 31, 2008 CASH FLOWS FROM OPERATING ACTIVITIES Cash collected from customers $ 93,970 Cash payments for: Inventory $65,600 Salaries and wages 20,400 Taxes 3,100 Total cash payments 89,100 Net cash provided by operating activities $ 4,870 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of office building (210,000) CASH FLOWS FROM FINANCING ACTIVITIES Issuance of stock $250,000 Proceeds from issuance of long-term note 60,000 Dividends declared and paid (5,600) Net cash provided by financing activities 304,400
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This note was uploaded on 02/22/2009 for the course ACCT 151 taught by Professor Largay during the Spring '07 term at Lehigh University .

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Chapter 02 Homework 2 - Professor Gordon ACCT151 4...

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