solutions to selected suggestion problems midterm 2

solutions to selected suggestion problems midterm 2 - P13-1...

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P13-1 (continued) MetroVideo Inc. Statement of Cash Flows For the Year Ended December 31, 2004 Cash flows from operating activities: Net income $45,000 1 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense $15,000 2 Decrease in accounts receivable 7,000 3 Increase in merchandise inventory (4,000) 4 Decrease in accounts payable (11,000) 5 Increase in wages payable 1,000 6 8,000 Net cash provided by operating activities 53,000 Cash flows from investing activities: Cash payments to purchase fixed assets (60,000) 7 Cash flows from financing activities: Cash payments on long-term note (10,000) 8 Cash payments for dividends (5,000) 1 Cash receipts from issuing stock 25,000 9 Net cash provided by financing activities 10,000 Net increase in cash during the year 3,000 10 Cash balance, January 1, 2004 65,000 Cash balance, December 31, 2004 $68,000 P13-3 (continued) MetroVideo Inc. Statement of Cash Flows For the Year Ended December 31, 2004 Cash flows from operating activities: Collections from customers ($195,000 + 7,000) $202,000 3 Payments to suppliers ($90,000 + 4,000 + 11,000) (105,000) 4, 5 Payments for wages ($45,000 – 1,000) (44,000) 6 Net cash provided by operating activities 53,000
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Cash flows from investing activities: Cash payments to purchase fixed assets (60,000) 7 Cash flows from financing activities: Cash payments on long-term note (10,000) 8 Cash payments for dividends (5,000) 1 Cash receipts from issuing stock 25,000 9 Net cash provided by financing activities 10,000 Net increase in cash during the year 3,000 10 Cash balance, January 1, 2004 65,000 Cash balance, December 31, 2004 $68,000 P3–5. (continued) Req. 2 HUNTER COMPANY Statement of Cash Flows For the Year Ended December 31, 2004 Cash flows from operating activities: Net income . ..................................................................... $12,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense . ................................................... 6,000 Decrease in accounts receivable . .................................. $ 2,000 Decrease in merchandise inventory . .............................. 6,000 Increase in accounts payable . ....................................... 3,000 Decrease in wages payable . .......................................... (200) Total adjustments . .......................................................... 16,800 Net cash provided by operating activities . ................. 28,800 Cash flows from investing activities: Cash payments to purchase fixed assets . ...................... (9,000) Cash flows from financing activities:
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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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solutions to selected suggestion problems midterm 2 - P13-1...

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