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LE#12 - Lab Experience#12 Ch12Group Exercise Problem Group...

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Lab Experience #12 –Ch12Group Exercise Problem: Group Exercise: Statement of Cash Flows Glendive Corp. is in the process of preparing its statement of cash flows for the year ended June 30, 2008. An income statement for the year and comparative balance sheets follow: For the year ended June 30, 2008 Sales revenue $550,000 Cost of goods sold 350,000 Gross profit 200,000 General and administrative expenses 55,000 Depreciation expense 75,000 Loss on sale of land 5,000 Total expenses and losses 135,000 Income before interest and taxes 65,000 Interest expense 15,000 Income before tax 50,000 Income tax expense 17,000 Net income $ 33,000 June 30 2008 2007 Cash $31,000 $40,000 Accounts receivable 90,000 75,000 Inventory 80,000 95,000 Prepaid rent 12,000 16,000 Total current assets 213,000 226,000 Land 200,000 250,000 Plant and equipment 815,000 520,000 Accumulated depreciation (325,000) (250,000) Total long-term assets 690,000 520,000 Total assets $903,000 $746,000 Accounts payable $155,000 $148,000 Other accrued liabilities 32,000 26,000 Income taxes payable 8,000 10,000 Total current liabilities 195,000 184,000 Long-term bank loan payable 100,000 130,000 Common stock 350,000 200,000 Retained earnings 258,000 232,000
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