TakeHomeTest1

TakeHomeTest1 - Question2

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1.  The following informatoin was taken from Flouer Inc. financial statements for 2009 and 2010.   2010 2009 Change Assets: Accounts receivable  $12,000   $39,500  (27500) Inventories  $16,000   $31,000  (15000) Prepaid insurance  $700   $2,000  (1300) PPE: Equipment  $98,000   $85,000  13000  Accumulated Depreciation  $17,000   $18,000  (1000) Liab and SHE: Accounts payable  $32,000   $21,300  10700  Notes payable  $81,000   $67,000  14000  Dividends payable  $-     $6,600  (6600) Additional paid-in capital  $65,000   $40,000  25000  Common stock  $32,000   $14,000  18000  Retained earnings  $16,200   $21,200  (5000) Flouer Inc. Income Statement for 2010 Sales  $638,000  Sales returns  $5,000  Net sales  $633,000  Cost of goods sold  $434,000  Gross profit  $199,000  Operating expenses Iincluding $8000 depreciation)  $182,000  Loss on sale of equipment  $6,000  Net income  $11,000  Additional information: Equipment with a cost of $20,000 was sold for $5,000 during 2010.  New equipment was purchased fo The company borrowed $14,000 from the bank on a long-term note payable. No stock was repurchased for treasury. Prepare a cash flow statement in correct form, including all work necessary to prepare the statement. Use the direct method.
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This note was uploaded on 11/13/2010 for the course EMS 432 taught by Professor Johnson during the Spring '10 term at NMT.

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TakeHomeTest1 - Question2

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