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Chapter 23 - EXERCISE 23-3 Vince Gill Company Partial...

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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 accrued expenses payable (100,000 ) 175,000 Net cash provided by operating activities $1,225,000
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EXERCISE 23-4 Vince Gill Company Partial Statement of Cash Flows For the Year Ended December 31, 2008 Cash flows from operating activities Cash receipts from customers $7,260,000 (a) Cash payments To suppliers $4,675,000 (b) For operating expenses 1,360,000 (c) 6,035,000 Net cash provided by operating activities $1,225,000 Computations: (a) Cash receipts from customers Sales $6,900,000 Add: Decrease in accounts Add: receivable 360,000 Cash receipts from customers $7,260,000 (b) Cash payments to suppliers Cost of goods sold $4,700,000 Deduct: Decrease in inventories 300,000 Purchases 4,400,000 Add: Decrease in accounts Add: payable 275,000 Cash payments to suppliers $4,675,000 (c)
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