Cash Flow Practice Problem 20

Cash Flow Practice Problem 20 - $2,000 of Property Plan and...

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Prepare Statement of Cash Flows for fiscal year ended December 31, 2007 from the following informa ABC Corporation Balance Sheet as of December 31, 2007 and 2006 31-Dec-07 31-Dec-06 Cash 4,000 800 Accounts Receivable 123 500 Inventories 1,000 1,500 Prepaid Expenses 500 600 Property, Plan and Equipment 6,000 3,000 Less: Accumulated Depreciation (2,500) (1,000) Total Assets 9,123 5,400 Accounts Payable 1,000 700 Accrued Expenses 500 700 Notes Payable-Long term 5,000 1,000 Common stock 3,000 1,000 Retained earnings (377) 2,000 Total liabilities and shareholders' equity 9,123 5,400 ABC Corporation Income Statement for fiscal years ended December 31, 2007 and 2006 2007 Sales Revenue 4,000 Less: Expenses Cost of Goods Sold (2,000) General, Sales and Administrative Expenses (500) Depreciation (1,500) Interest (200) Taxes 80 Net loss (120) Additional Information: All dividends were paid in cash
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Unformatted text preview: $2,000 of Property Plan and Equipment was acquired for common stock The company issued long-term notes payable entirely for cash ation ABC Corporation Statement of Cash Flows for the years ended December 31, 2007 and 2006 Cash Flows from Operations: Net Income (loss) (120) Adjustments: Depreciation Expense 1,500 Decrease in Accounts Receivable 377 Decrease in Inventories 500 Decrease in Prepaid Expenses 100 Increase in Accounts Payable 300 Decrease in Accrued Expenses (200) Cash Flows from Operations 2,457 Cash flows from Investing Activities Purchases of PP&E for cash (1,000) Cash flows from Financing Additional borrowings 4,000 Dividend payments (2,257) Net Cash Flows from Financing 1,743 Net Change in Cash 3,200 Beginning Cash Balance 800 Ending Cash Balance 4,000...
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This note was uploaded on 02/05/2011 for the course ACCT 301 taught by Professor Hasan during the Fall '09 term at George Mason.

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Cash Flow Practice Problem 20 - $2,000 of Property Plan and...

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