ORIE 3150 cash flow notes Oct 21 2010

ORIE 3150 cash flow notes Oct 21 2010 - ORIE 3150 1...

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ORIE 3150 October 21, 2010 1. Construct a complete statement of cash flows for Newman Company, using the indirect method. Newman Company Balance Sheets Assets Dec. 31, 2006 Dec. 31, 2005 Cash 76,000 20,000 Equipment (gross) 60,000 78,000 Accumulated Depreciation (28,000) (24,000) Total Assets 108,000 74,000 Liabilities Accts Payable 15,000 15,000 Total Liabilities 15,000 15,000 Stockholders Equity Common Stock 18,000 18,000 Retained Earnings 75,000 41,000 Total Stockholders Equity 93,000 59,000 Total SE and Liabilities 108,000 74,000 Newman Company Income Statement Year Ended Dec. 31 2006 Sales 242,000 Cost of goods sold (175,000) Gross margin 67,000 Depreciation Expense (15,500) Administrative Expenses (8,500) Gain on Sale 2,000 Income before taxes 45,000 Tax expense (11,000) Net Income 34,000 Notes: 1. No Dividends were paid during 2006 2. Equipment was sold for $8,500. It cost $18,000 originally and had a book value of $6,500 at the time of sale.
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2. Bobmart Company has the following annual and year-ending data: Year: 2005 Year: 2004 Net Sales 1,826,235 2,061,787 Cost of Goods Sold 955,796 1,001,975 Salaries Expense 303,309 348,031 Salaries Payable 32,480 21,392 Inventory 498,222 573,848 Accounts Payable
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