BUAD250A Spring 2008 Midterm#1

BUAD250A Spring 2008 Midterm#1 - BUAD250A Spring 2008...

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BUAD250A Spring 2008 Midterm#1 1. Statement of Cash Flows: [081M1.1a] Balance Sheets Ending Starting Cash $9,400 $100 Accounts Receivable 2,600 3,400 Supplies Inventory 1,300 800 Prepaid Rent 800 1,000 Property, Plant and Equipment19,000 14,200 (Acc. Depr.) (4,000) (2,200) Investments 6,500 8,600 Total Assets $35,600 $25,900 Accounts Payable $2,500 $3,200 Interest Payable 1,100 450 Dividends Payable 1,200 50 Unearned Revenues 500 2,600 Current Notes Payable 3,200 3,800 Salaries Payable 2,700 1,400 Non-current Notes Payable 13,000 6,000 Total Liabilities $24,200 $ 17,500 Contributed Capital $2,600 $2,000 Retained Earnings 8,800 6,400 Total Owners’ Equity $11,400 $8,400 $25,900 Income Statement for the Year Ended December 31: Sales $35,000 Gain on Sale of Investment 3,500 $38,500 Expenses and Loss: Salaries Expense $14,200 Supplies Expense 3,600 Rent Expense 6,300 Depreciation 4,200 Interest Expense 1,100 Loss on Sale of PPE 800 $30,200 Income Before Income Taxes $8,300 Tax Expense 2,490 Net Income $5,810
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Additional Information: 1. The firm sold PPE for $800 less than the carrying value of the PPE at the date of sale. The original cost had been $8,000. 2. The firm sold an investment for $7,500. 3. The firm borrowed $8,000 on a long-term note payable. Required: Determine the proper sources or uses of cash from each of these three activities: Operations, Investing and Financing. Spaces for your answers on the next page. Statement of Cash Flows (continued): [081M1.1a] There may be extra lines for your answers OR there may not be enough lines for your answers. If you need extra ‘lines’ for your answers, please add them as needed. Cash Provided (Used) by Operating Activities:
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This note was uploaded on 10/07/2008 for the course ACCT 250A taught by Professor Hopkins during the Fall '07 term at USC.

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BUAD250A Spring 2008 Midterm#1 - BUAD250A Spring 2008...

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