Duchac Chapter 13 Series A Problems

Duchac Chapter 13 Series A Problems - CHAPTER 13 SERIES A...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 13 SERIES A PROBLEMS Prob. 13–1A WINNER’S EDGE SPORTING GOODS, INC. Statement of Cash Flows For the Year Ended December 31, 2007 Cash flows from operating activities: Net income, per income statement. .................. $180,600 Add: Depreciation. ............................................. $ 26,000 Increase in accounts payable. ................ 18,200 44,200 $224,800 Deduct: Increase in accounts receivable. ...... $ 17,500 Increase in inventories. ...................... 27,100 Gain on sale of investments. ............. 12,000 Decrease in accrued expenses. ........ 4,900 61,500 Net cash flow from operating activities. ................ $ 163,300 Cash flows from investing activities: Sale of investments. ........................................... $132,000 Less: Purchase of land. ..................................... $160,000 Purchase of equipment. .......................... 120,000 280,000 Net cash flow used for investing activities. .......... (148,000) Cash flows from financing activities: Sale of common stock. ....................................... $105,000 Less dividends. ................................................... 52,000 * Net cash flow provided by financing activities. ... 53,000 Increase in cash. ....................................................... $ 68,300 Cash at the beginning of the year. ......................... 395,800 Cash at the end of the year. .................................... $ 464,100 *$56,000 + $10,000 – $14,000 = $52,000 13-1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Prob. 13–2A MEDALIST ATHLETIC APPAREL CO. Statement of Cash Flows For the Year Ended December 31, 2007 Cash flows from operating activities: Net income, per income statement. .................. $ 61,500 Add: Depreciation. ............................................. $17,900 Increase in accounts payable. ................ 1,700 Decrease in accounts receivable. .......... 4,200 23,800 $ 85,300 Deduct: Increase in merchandise inventory. . $ 5,400 Increase in prepaid expenses. .......... 1,500 6,900 Net cash flow from operating activities. ................ $ 78,400 Cash flows from investing activities: Equipment. ........................................................... $ 47,500 Net cash flow used for investing activities. .......... (47,500) Cash flows from financing activities: Sale of common stock. ....................................... $104,000 Less: Dividends. ................................................. $48,000 Retire mortgage note payable. ............... 95,000 143,000 Net cash flow used in financing activities. ........... (39,000
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/23/2008 for the course ACCT 2101 taught by Professor Sinclair during the Spring '08 term at Georgia Southern University .

Page1 / 7

Duchac Chapter 13 Series A Problems - CHAPTER 13 SERIES A...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online