Prelim_One_Practice_Fall_2007 - ORIE 350 Name (please...

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ORIE 350 Name (please print) _______________________ Practice Prelim, Fall 2007 Helpful equations: ΔC = ΔL + ΔOE – ΔNCA Cash Collected from Customers = Net Sales – ΔA/R Cash Paid for Purchases = CGS + ΔInventory – ΔA/P Cash Payments for Interest = Bond Interest Expense + Amortization of Bond Premium Cash Payments for Interest = Bond Interest – Amortization of Bond Discount Cash Payments for Salaries = Salaries Expense – ΔSalaries Payable
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1. Construct the statement of cash flows for Newman Company, using the indirect method. Newman Company Balance Sheets Assets 2006 2005 Cash 31,000 20,000 Accts Rec 38,000 14,000 Inventory 27,000 20,000 Equipment (gross) 60,000 78,000 Accumulated Depreciation (30,000) (24,000) Total Assets 126,000 108,000 Liabilities Accts Payable 29,000 15,000 Income Taxes Payable 7,000 8,000 Bank Loan Payable 27,000 33,000 Total Liabilities 63,000 56,000 Stockholders Equity Common Stock 18,000 14,000 Retained Earnings 45,000 38,000 Total Stockholders Equity 63,000 52,000 Total SE and Liabilities 126,000 108,000 Newman Company Income Statement Year Ended Dec. 31 2006 Sales 242,000 Cost of goods sold (175,000) Gross margin 67,000 Depreciation (15,500) Administrative expenses (8,500) Interest expense (3,000) Income before taxes 40,000 Tax expense (6,000) Net Income 34,000 Notes: 1. Dividends paid = $27,000 during 2006 2. Equipment was sold for $8,500. It cost $18,000 originally and had a book value of $8,500 at the time of sale.
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2. Listed in random order are figures for the Flick Co. as of Dec. 31, 2005. Sort the accounts, discard unneeded data, and prepare a balance sheet in the proper format. Accounts Payable
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Prelim_One_Practice_Fall_2007 - ORIE 350 Name (please...

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