Financial_StatementsGroupAProblemssolutions

Financial_StatementsGroupAProblemssolutions - Net decrease...

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

View Full Document Right Arrow Icon
Solution to Problem  1 CPA Corporation Statement of Cash Flows For the Year Ended December 31, 2006 P P Cash flows from operating activities P P Cash collected from customers $400,000 P Cash paid to vendors for inventory (275,000) P Cash paid to employees (100,000) P Cash paid for taxes (50,000) P Cash paid for interest (5,000) P Net cash used by operating activities ($30,000) Cash flows from financing activities Cash from sale of common stock $100,000 Cash paid to retire debt (35,000) Purchase of treasury stock for cash (20,000) Net cash provided by financing activities $45,000
Background image of page 1

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

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Net decrease in cash during the period ($23,000) Cash balance at January 1, 2006 55,000 Cash balance at end of year $32,000 Solution to Problem 3 Cash flows from operating activities: Net loss ($21,000) P Decrease in accounts receivables 10,000 P Decrease in inventory 2,000 P Increase in prepaid expense (5,000) P Increase in accounts payable 3,000 P Decrease in interest payable (2,000) P Depreciation expense 8,000 P Net cash used by operating activities ($5,000)...
View Full Document

This note was uploaded on 12/09/2009 for the course FAR 5745 taught by Professor Philoreily during the Spring '09 term at Nova Southeastern University.

Page1 / 3

Financial_StatementsGroupAProblemssolutions - Net decrease...

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