12-5A - 12-5A SOURCES OF CASH CASH FLOWS FROM OPERATING...

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Unformatted text preview: 12-5A SOURCES OF CASH: CASH FLOWS FROM OPERATING ACTIVITIES: NET INCOME..................................… 230,000 Addback: DEPRECIATION...................... 60,000 WORKING CAPITAL....................... CHANGE IN CURRENT ASSETS...... 15000 CHANGE IN CURRENT LIABILITIES.......... -27000 LOSS ON DISPOSAL............................... 16000 Subtotal.... CASH FLOWS FROM INVESTING ACTIVITIES: SALE OF PROPERTY.............. +700000 Cash Proceeds? Subtotal.... NET CASH FLOW CHANGE IN CASH: (not shown) BEGINNING CASH ENDING CASH NET CHANGE Jantzen Company's income statement contained the condensed information below. JANTZEN INC. Income Statement For the Year Ended December 31, 2010 Revenues $970,000 Operating expenses, excluding depreciation $614,000 Depreciation expense 70,000 Loss on sale of equipment =16,000 Income before income taxes=270,000 Income tax expense=40,000 Net income= $230,000 Jantzen's balance sheet contained these comparative data at December 31. 2010 2009 Accounts receivable $70,000 $60,000 Accounts payable 41,000 28,000 Income taxes payable 13,000 7,000 Accounts payable pertain to operating expenses. Complete the operating activities section of the statement of cash flows using the indirect method below. (If the amount reduces cash flow put either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45). List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1.) JANTZEN INC. Partial Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income $ 230,000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation $ 70,000 Loss on sale of equipment 16,000 Increase in accounts payable 13000 Increase in taxes payable =? Increase in accounts receivable =10000 Net cash provided by operating activities $? ...
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This note was uploaded on 06/16/2011 for the course ECON 101 taught by Professor Klute during the Spring '11 term at MIT.

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12-5A - 12-5A SOURCES OF CASH CASH FLOWS FROM OPERATING...

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