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Chapter 23 HW - E5-15(a SONDEGAARD CORPORATION Statement of...

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E5-15 ( a ) SONDEGAARD CORPORATION Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income……………………………………………………….. Depreciation expense……………………………………….. $17,000 Loss on sale of investments………………………………….. $7,000 Decrease in accounts receivable…………………………….. $5,000 Decrease in current liabilities………………………………… ($17,000) Net cash provided by operating activities………………………….. Cash flows from investing activities Sale of investments [($74,000 - $52,000) - $7,000]………………………………… $15,000 Purchase of equipment……………………………………………. ($58,000) Net cash used by investing activities……………………………….. Cash flows from financing activities Payment of cash dividends………………………………………… Net increase in cash ……………………………………………………. Cash at beginning of year……………………………………………….. Cash at end of year…………………………………………………….. ( b ) Free Cash Flow Analysis Net cash provided by operating activities……………………………….. Less: Purchase of equipment…………………………………………… Dividends……………………………………………………….. Free cash flow…………………………………………………………. Adjustments to reconcile net income to net cash provided by operating activities:
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$160,000 $12,000 $172,000 ($43,000) ($50,000) $79,000 $78,000 $157,000 $172,000 ($58,000) ($50,000) $64,000
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BE23-3 ( a ) P - I ( j ) A ( b ) A ( k ) D ( c ) R - F ( l ) R - F ( d ) D ( m ) N ( e ) R - I ( n ) D ( f ) R - I, D ( o ) R - F ( g ) P - F ( p ) P - F ( h ) D ( q ) R - I, A ( i ) P - I ( r ) P - F
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E23-2 ( a ) Plant assets (cost)……………………………………………………… $25,000 Accumulated depreciation ([$25,000 / 10] x 6)………………………… $15,000
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