3A-KIMMEL.FA PBC.ch12.vpdf

3A-KIMMEL.FA PBC.ch12.vpdf - PROBLEM 12-7C (a) SHAFI...

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12-7 PROBLEM 12-7C (a) SHAFI COMPANY Statement of Cash Flows For the Year Ended December 31, 2007 Cash flows from operating activities Net income. ......................................................... $86,000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense. ............................... $16,000* Increase in accounts receivable . ............. (12,000) Decrease in merchandise inventory. ....... 4,000 Decrease in accounts payable . ................ (7,000) Increase in income taxes payable. ........... 4,000 5,000 Net cash provided by operating activities. ................................................ 91,000 Cash flows from investing activities Sale of equipment. ............................................. 3,000 Purchase of equipment. .................................... (65,000 ) Net cash used by investing activities. ..... (62,000) Cash flows from financing activities Issuance of common stock. .............................. 12,000 Payment of dividends. ....................................... (40,000) Issuance of bonds . ............................................ 10,000 Net cash used by financing
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3A-KIMMEL.FA PBC.ch12.vpdf - PROBLEM 12-7C (a) SHAFI...

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