Class26 - Solutions - EXERCISE 23-3 Vince Gill Company...

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EXERCISE 23-3 Vince Gill Company Partial Statement of Cash Flows For the Year Ended December 31, 2008 Cash flows from operating activities Net income $1,050,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense $ 60,000 Decrease in accounts receivable 360,000 Decrease in inventory 300,000 Increase in prepaid expenses (170,000) Decrease in accounts payable (275,000) Decrease in accd. exp. payable (100,000 ) 175,000 Net cash provided by operating activities $1,225,000 1
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EXERCISE 23-6 KRAUSS COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2007 Cash flows from operating activities Net income $90,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense $60,000 Loss on sale of equipment 26,000 Decrease in accounts receivable 17,000 Increase in accounts payable 10,000 Decrease in income taxes payable (4,500 ) 108,500 Net cash provided by operating activities $198,500 2
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This note was uploaded on 12/04/2009 for the course MGMT 351 taught by Professor Staff during the Spring '08 term at Purdue University-West Lafayette.

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Class26 - Solutions - EXERCISE 23-3 Vince Gill Company...

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