MODULE 6.3 E Overall change in cash

MODULE 6.3 E Overall change in cash - Current assets is an...

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Current assets is an inverse relationship Subtract increases and add decreases Current liabilities is a direct relationship Add increases and subtract decreases CURRENT ASSETS Accounts receivable increased by $5000 so I subtracted it Inventory decreased by $8000 so I added it Office Supplies decreased by $2000 so I added it Other current assets increased by $7,000 so I subtracted it. Fixed assets increased by $20,000 so I subtracted it My total at this time was -22000 CURRENT LIABILITIES Accounts Payable decreased by $15000 so I subtracted it Bonds Payable decreased by $25000 so I subtracted it Accrued expenses increased by $2000 so I added it Common Stock increased by $5,000 so I added it Dividends of $12,000 were paid so I subtracted it. Net Income was $75,000 so I added it My total at the end was 8,000 and it was CORRECT! ! !
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Walk Through for E-2 Part 1: Operating Activities: I start with Net Income of 103,000 Current Assets Accounts receivable decreased by $29000 so I add it
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This note was uploaded on 07/16/2011 for the course ACCT 212 taught by Professor Song during the Spring '11 term at DeVry Kansas City.

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MODULE 6.3 E Overall change in cash - Current assets is an...

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