7-naboo_solution - Cash paid for income taxes 56,350 Cash paid for other expenses 88,200(726,750 Net cash provided by operating activities

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CASE - NABOO ENTERPRISES – SOLUTION Income Statement Adjustments Statement of Cash Flows Sales $ 835,400 7,500 $ 827,900 Cost of goods sold (454,500) + 2,800 + 3,450 (448,250) Depreciation expense (38,000) +38,000 0 Salaries expense (121,350) No adjustment (121,350) Interest expense (12,200) 400 (12,600) Income taxes expense (56,000) 350 (56,350) Other expenses (87,500 ) 700 (88,200 ) Net income $ 65,850 $ 101,150 (a) Operating activities: Cash collected from customers $827,900 Cash paid for inventory $448,250 Cash paid for salaries 121,350 Cash paid for interest 12,600
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Unformatted text preview: Cash paid for income taxes 56,350 Cash paid for other expenses 88,200 (726,750 ) Net cash provided by operating activities $101,150 (b) Operating activities: Net income $ 65,850 Add: Depreciation $38,000 Decrease in inventory 2,800 Increase in accounts payable 3,450 44,250 Less: Increase in accounts receivable $ 7,500 Decrease in interest payable 400 Decrease in income taxes payable 350 Increase in prepaid expenses 700 (8,950 ) Net cash provided by operating activities $101,150...
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This note was uploaded on 05/04/2008 for the course ACCT 3320 taught by Professor Frankzhang during the Summer '06 term at University of Texas at Dallas, Richardson.

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