Finance Homeowrk_FK

Finance Homeowrk_FK - 6. Answer A. Operating activities Net...

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6. Answer Farzana Khan A. Operating activities Year 2005-2008 Net income $2,619 Add back depreciation (Increase) decrease in Receivables 8,112 (Increase) decrease in inventories 6694 (Increase) decrease other current assets 3,171 (Increase) decrease in accounts payable (8,588) Increase (decrease) in taxes (1178) Cash flow from operations 10,830 Investing activities Cash flow from investing 0 Financing activities Increase (decrease) in long-term debt 3,490 Increase (decrease) in common stock 600 (Increase) decrease in Retain Earning 5,299 Cash flow from financing 9,389 Net change in cash 20,219 Ending cash balance year 2008 $20,219 B. The statement for R & E supplies is insight that the company net sales are increasing every year. The total expense is also decreasing by every year. The total asset is also increasing as well.
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9. Beckey Construction generated $330,000 of cash during the year. The $400,000 net income ignores the fact accounts receivable rose $ 250, 000, a use of cash. It also treats $ 180,000 depreciation as an expense whereas it is a noncash charge. The $ 20,000 increase in market value of assets adds to the value of the business, but is not a cash flow. Here are the figures. Accounting Income
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This note was uploaded on 04/12/2011 for the course FIN 235 taught by Professor Michillecouncil during the Spring '11 term at Davenport.

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Finance Homeowrk_FK - 6. Answer A. Operating activities Net...

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