Answer of Chapter 16

Answer of Chapter 16 - PROBLEMS Prob. 161A OAK AND TILE...

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PROBLEMS Prob. 16–1A OAK AND TILE FLOORING CO. Statement of Cash Flows For the Year Ended June 30, 2008 Cash flows from operating activities: Net income . ..................................................... $ 65,900 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation. .............................................. 7,300 Loss on sale of investments. .................... 5,000 Changes in current operating assets and liabilities: Increase in accounts receivable. .............. (9,300) Increase in inventories. ............................. (4,200) Increase in accounts payable. .................. 5,700 Increase in accrued expenses. ................. 1,800 Net cash flow from operating activities . ....... $ 72,200 Cash flows from investing activities: Cash received from sale of investments . ..... $ 45,000 Less: Cash paid for purchase of land. .......... $145,000 Cash paid for purchase of equipment. ....................................... 39,500 184,500 Net cash flow used for investing activities. ....................................................... (139,500) Cash flows from financing activities: Cash received from sale of common stock. . $126,000 Less cash paid for dividends. ........................ 47,500 * Net cash flow provided by financing activities. ....................................................... 78,500 Increase in cash . .................................................. $ 11,200 Cash at the beginning of the year. ...................... 23,500 Cash at the end of the year . ................................ $ 34,700 *$50,000 + $10,000 – $12,500 = $47,500 446
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Prob. 16–1A Concluded A B C D E OAK AND TILE FLOORING CO.
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This note was uploaded on 10/20/2010 for the course E 2292 taught by Professor Linh during the Spring '10 term at Troy.

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Answer of Chapter 16 - PROBLEMS Prob. 161A OAK AND TILE...

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