tutorial_10 - AP132. Req.1 Related Cash Balance sheet at...

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AP13–2. Req.1 Related Cash Balance sheet at December 31 Flow Section 2010 2009 C h a n g e Δ in Cash Cash $63,000 $65,000 - 2, 0 0 0 10 Net increase in cash O Accounts receivable 15,000 20,000 - 5, 0 0 0 3 Add to net income the decrease in A/ R O Inventory 22,000 20,000 + 2, 0 0 0 4 Subtract from net income the increase in Inventory I Property and equipment 210,000 150,000 + 6 0, 0 0 0 7 Payment in cash for equipment O Less: Accumulated depreciation (60,000) (45,000) - 1 5, 0 0 0 2 Add to NI because depreciation expense does not affect cash
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$210,000 O Accounts payable $8,000 $19,000 - 1 1, 0 0 0 5 Subtract from net income the decrease in Accounts Payable O Taxes payable 2,000 1,000 + 1, 0 0 0 6 Add to net income the increase in Wages payable F Note payable, long- term 85,000 75,000 + 1 0, 0 0 0 8 Borrow additional note principal F Contributed capital 75,000 70,000 + 5, 0 0 0 9 Issuance of stock for cash O,F Retained earnings 80,000 45,000 + 3 5, 0 0 0 1 Increased for net income ($40,000) / decreased for dividends ($5,000) $250,000 $210,000
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This note was uploaded on 05/10/2011 for the course ACCT 1002 taught by Professor Ng during the Spring '11 term at National University of Singapore.

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tutorial_10 - AP132. Req.1 Related Cash Balance sheet at...

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