12-1 - Proceeds from issue of common stock 50,000 Cash...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Terry Crew ACC 101 11/21/2010 Problem 12-1 1) Net Income $26,000 Adjustments for: Depn $35,000 Increase in AR (5,000) Decrease in inventory 10,000 Increase in prepaid rent (3,000) Increase in AP 2,000 Decrease in income taxes payable (2,000) Increase in short-term notes payable 10,000 Cash flow from operating activities 73,000 Investing activities Purchase of plant and equipment (100,000) Cash flows used in investing activities (100,000) Financing activities Redemption of bonds payable (25,000)
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Proceeds from issue of common stock 50,000 Cash flows from financing activities 25,000 Decrease in CCE (2,000) CCE at beginning or yr 10,000 CCE at end of yr 8,000 2.) Did Chrisman generate sufficient cash from operations to pay for its investing activities? How did it generate cash other than from operations? No it did not. Company operations provided $73,000. The rest had to of come from common stock issued....
View Full Document

This note was uploaded on 02/28/2011 for the course ACCT 101 taught by Professor Kepler during the Spring '10 term at Ivy Tech Community College.

Ask a homework question - tutors are online