Ernest Banks Company

Ernest Banks Company - Ernest Banks Company Comperative...

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Ernest Banks Company Comperative Balance Sheets December 31 2005 Assets: Cash $13,000 Accounts Receivable $33,000 Merchandise Inventory $27,000 Prepaid Expenses $13,000 Land $40,000 $225,000 Less: Accumulated Depreciation ($67,500) Total $283,500 Accounts Payable $18,500 Accrued Expenses Payable $7,500 Interest Payable $1,500 Income Taxes Payable $2,000 Bonds Payable $80,000 Common Stock $105,000 Retained Earnings $69,000 Total $283,500 Ernest Banks Company Statement of Cash Flows - Indirect Method For the Year Ended December 31, 2006 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Add:Depreciation Expense $7,500 Add: Decrease in Accounts Receivable $9,000 Add: Decrease in Inventory $7,000 Add: Increase in Accrued Expenses Payable $2,000 Add: Increase in Income Tax Payable $1,000 Less: Increase in Prepaid Expenses ($7,000) Less: Decrease in Accounts Payable
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Ernest Banks Company - Ernest Banks Company Comperative...

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