{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

solutions to selected suggestion problems midterm 2

solutions to selected suggestion problems midterm 2 -...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
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
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
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)
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}