7-boswell_solution

7-boswell_solution - .............. $ 413,100 Cash flows...

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BOSWELL MAXELL MANUFACTURING COMPANY SOLUTION Boswell Manufacturing Company Statement of Cash Flows (Indirect method) For the Year Ended December 31, 2005 Cash flows from operating activities: Net income. ................................................................. $ 320,800 Adjustments: Depreciation expense. ............................................ 60,000 Intangible assets amortization. .............................. 30,000 Increase in accounts receivable. ........................... (13,000) Increase in inventory. .............................................. (30,000) Decrease in accounts payable. .............................. (34,800) Increase in interest payable. .................................. 8,100 Increase in wages payable. .................................... 72,000 Net cash provided by operating activities.
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Unformatted text preview: .............. $ 413,100 Cash flows from investing activities: Purchase of machinery. ............................................. $ (48,000 ) Net cash used in investing activities. ....................... (48,000) Cash flows from financing activities: Retirement of long-term debt. ................................... $ (450,000) Sale of common stock. .............................................. 150,000 Payment of dividends. ............................................... (18,000 ) Net cash used in financing activities. ...................... (318,000 ) Net increase in cash and cash equivalents. ............ $ 47,100 Cash and cash equivalents at beginning of year. ...... 140,000 Cash and cash equivalents at end of year. .............. $ 187,100...
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7-boswell_solution - .............. $ 413,100 Cash flows...

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