In Class Work on CH 5 Concepts Handout305

In Class Work on CH 5 Concepts Handout305 - IN CLASS WORK...

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IN CLASS WORK ON CH 5 CONCEPTS HANDOUT E5-16 PREPARING A STATEMENT OF CASH FLOWS December 31 changes 2010 2009 Assets Cash 41,000incr $ 63,000 $ 22,000 Accounts receivable 16,000incr 82,000 66,000 Inventories 9,000decr 180,000 189,000 Land 39,000decr 71,000 110,000 Equipment 70,000incr 270,000 200,000 Accumulated depreciation-equipment 27,000incr (69,000) (42,000) Total 52,000incr $597,000 $545,000 Liabilities and Stockholders’ Equity Accounts payable 13,000decr $ 34,000 $ 47,000 Bonds payable 50,000decr 150,000 200,000 Common stock ($1 par) 50,000incr 214,000 164,000 Retained earnings 65,000incr 199,000 134,000 Total 52,000incr $597,000 $545,000 Additional information: 1. Net income for 2010 was $105,000 2. Cash dividends of $40,000 were declared and paid 3. Bonds payable amounting to $50,000 were retired through issuance of common stock. STEPS: 1. Study the changes in the balance sheet accounts –every one. How much did cash change year or over year? This is your answer if you have the information. Classify each account as operating, investing or financing activity accounts. How much did other non cash accounts change and what does the increase or decrease means in terms of revenues, expenses, cash received or paid?
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