ACT3391FALL2010TraditionalHomework13to15solution - Prepare...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
HOMEWORK FALL 2010 ACT3391 13. (4 points) J Company - What was J’s net cash provided by (used in) operating activities for 2009? Be sure to label your answer as provided by or used in. Net income 4,500,000 Add depreciation expense 200,000 Subtract gain on sale of fixed asset 2,750,000 Subtract increase in AR 888,000 Add decrease in prepaids 120 000 Subtract decrease in AP 770,000 Subtract decrease in unearned 125,000 Cash flows provided by operating activities 287,000 14. (3.5 points) Identify which (if any) of the 3 sections on a statement of cash flow that the following should be presented/ reflected. a. Cash dividends declared, but not yet paid to shareholders. not a cash flow b. Purchase of fixed assets for cash. investing c. Borrowing money on a long-term basis. financing d. Borrowing money on a short-term basis. financing e. Issuing common stock for $15 per share. financing f. Sale of a fixed asset at an amount that is greater than book value. operating (gain) AND investing (proceeds) 15. (6 points) Lobnitz Company’s balance sheets at December 31 2009 and 2010 are presented below:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Prepare a statement of cash flows IN GOOD FORM for the year ended December 31, 2010. Lobnitz Company Statement of Cash Flows For the year ended December 31, 2010 Cash , beginning of year $600,000 Operating activities: Net income 187,000 Depreciation expense 130,000 Gain on sale of fixed assets ( 15,000) Change in accounts receivable 125,000 Change in prepaid expenses ( 25,000) Change in accured expenses payable ( 100,000) Cash flows provided by operating activities 302,000 Investing activities: Capital expenditures ( 250,000) Proceeds from asset sales 35,000 Cash flows used in investing activities ( 215,000) Financing activities: Dividends to shareholders ( 87,000) Additions to long-term debt 300,000 Reductions of long-term debt ( 500,000) Proceeds from issuing stock 100,000 Cash flows used in financing activities (187,000) Change in cash (100,000) Cash, end of year $500,000 1 2...
View Full Document

{[ snackBarMessage ]}

Page1 / 2

ACT3391FALL2010TraditionalHomework13to15solution - Prepare...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online