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Unformatted text preview: Required 1. Calculate the company’s net cash flows from operating activities for the month of April. You do not need to prepare a formal statement of cash flows. 2. Calculate the company’s net income for the month of April. You do not need to prepare a formal income statement. Chapter 3 In-Class Exercise Solution Required 1. The Tree House Store Net Cash Flow from Operating Activities For April Cash receipts: Collected from customers ($9,360 + $6,475) $ 15,835 Cash payments: Merchandise ($5,250 + $16,100) $21,350 Advertising 788 Rent (for April and May) 3,400 Wages 1,830 Total payments 27,368 Net cash flow from operating activities $ (11,533 ) B. The Tree House Store Accrual Basis Income Statement For April Sales ($12,800 + $11,000) $ 23,800 Expenses: Cost of goods sold ($6,300 + $4,200) $10,500 Rent (one month only) 1,700 Wages ($1,830 + $2,100) 3,930 Total expenses 16,130 Net income $ 7,670...
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This note was uploaded on 11/30/2010 for the course ACC 310F taught by Professor Verduzco during the Spring '07 term at University of Texas.
- Spring '07