HW 13.11 - $- $- Decrease in Accounts Payable $6,000.00...

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Jennifer Bryant A31746580 2/20/2008 Problem 13.11 Cash Budget Adjusted Net Income Approach For Years 20X1, 20X2, and 20X3 20X1 20X2 Cash - Beginning of Year $40,000.00 $118,000.00 Sources of Cash: Net Income $(20,000.00) $- Depreciation $30,000.00 $30,000.00 Other Sources: Sale of Capital Stock $100,000.00 $- Increase in Accounts Payable $5,000.00 $- Decrease in Accounts Receivable $- $- Decrease in Inventories $- $3,000.00 Total Sources $155,000.00 $151,000.00 Uses of Cash: Increase in Accounts Receivable $5,000.00 $5,000.00 Increase in Inventories $2,000.00 $- Purchase of Property $20,000.00 $50,000.00 Reduction in Long-term Debt $10,000.00 $10,500.00 Dividends Paid
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Unformatted text preview: $- $- Decrease in Accounts Payable $6,000.00 Total Uses $37,000.00 $71,500.00 Estimated Cash - End of Year $118,000.00 $79,500.00 1. Pretax Income $150,000.00 Net Operating Loss from 20X1 $(20,000.00) Total Taxable Income $130,000.00 Taxes $39,000.00 Pretax Income $150,000.00 Taxes $39,000.00 Net Income $111,000.00 (You subtract the taxes from the pretax income because the operating loss is only there to help red 2. Dividends = 111,000 x .4 = 44400 20X3 $79,500.00 $111,000.00 1 $30,000.00 $- $7,000.00 $5,000.00 $- $232,500.00 $- $2,000.00 $- $11,000.00 $44,400.00 2 $57,400.00 $175,100.00 duce the tax figure.)...
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This note was uploaded on 04/03/2008 for the course HB 482 taught by Professor Schmidgall during the Spring '08 term at Michigan State University.

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HW 13.11 - $- $- Decrease in Accounts Payable $6,000.00...

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