week 6 module - Decrease in Non-Current Assets Increase in...

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A-1: (Cash Basis Net Income) CBNI = Credit Sales – Remaining in A/R – Paid Expenses – PPD Rent = $200,000 - $15,000 - $105,000 - $1,000 = $xx,xxx Note: Accrued salaries and interest expenses are not yet paid and depreciation expense is a non-cash expenses and are not included in the cash basis net income for 2008
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Change in cash = Net income + Change in depreciation + decrease in A/R – increase in inventory – increase in PPF Expenses – decrease in A/P + increase in Salaries Payable = $55,000 + 12,000 + 3,000 - $14,000 - $4,000 - $8,000 + $2,000 = $xx,xxx Cash flows from Operating Activities = Net Income + change in depreciation – increase in A/R + decrease in inventory + increase in A/P C-1: (Investing Activities)
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Unformatted text preview: Decrease in Non-Current Assets + Increase in Non-Current Assets _ Decrease in Investment Accounts + Increase in Investment Accounts – = Change in cash due to Investing Activities = (44,000) No Financing activities – changes in long-term liabilities and stockholders’ equity • Cash inflows: o From sale of equity securities (company's own stock). o From issuance of debt (bonds and notes). • Cash outflows: o To stockholders as dividends. o To redeem long-term debt or reacquire capital stock (treasury stock). Change in Cash due to Financing Activities = Decrease in N/P + Increase in B/P + Increase in CS - Dividends Paid = -$7,000 + $20,000 + $30,000 - $7,000 = $xx,xxx...
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week 6 module - Decrease in Non-Current Assets Increase in...

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