PROBLEM+22-5+soln

PROBLEM+22-5+soln - PROBLEM 22-5 (a) Seneca Corporation...

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PROBLEM 22-5 (a) Seneca Corporation Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2008 Cash flows from operating activities Net income (1) $15,750 Adjustments to reconcile net income to net cash provided by operating activities: Loss on sale of equipment (2) $ 4,100 Extraordinary gain from flood damage (13,250) Amortization expense (3) 1,900 Patent amortization 1,250 Gain on sale of investment (AFS) (2,500) Increase in accounts receivable (net) (3,750) Increase in inventory (3,000) Increase in accounts payable 2,000 (13,250 ) Net cash flow provided by operating activities 2,500 Cash flows from investing activities Proceeds on sale of investments (AFS) 5,500 Proceeds on sale of equipment 2,500 Purchase of equipment (15,000) Proceeds from flood damage to building 37,000 Net cash provided by investing activities 30,000 Cash flows from financing activities Dividends paid (6,000) Payment of short-term note payable (1,000 ) Net cash used by financing activities (7,000
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PROBLEM+22-5+soln - PROBLEM 22-5 (a) Seneca Corporation...

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