{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Davies_Case - Davies(Page50 BOOK'SWAY(NOTOUR"S...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Davies (Page 50) BOOK'S WAY (NOT OUR"S) Income Statement 2010 Balance Sh Sales $600  Assets Cost of Goods Sold $460  Cash Gross Profit $140  Account Operating Expenses: Inventor    Selling Expenses $20  Other Cu    Gen. & Admin. Exp. $15  Total Cu    Depreciation Exp. $30  Gross P Total Operating Exp. $65  Less Ac Operating Income $75  Net Plan Interest Expense $15  Total As Earnings before Taxes $60  Income Taxes $18  Liabilitie Net Income $42  Account Accrued Short-Te Total Cu Long-Te Total De Commo    Comm    Paid-In    Retain Total Co Total Lia Steps (page 64) Operating Activities    Add depreciation to net income Net Income $42 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Depreciation $30  $72     Subtract increases in A/R and inventory  Increase in Inve ($33) Increase in A/R ($5) $34     Add increases in accounts payable Increase in A/P $1  Cash flow from  $35  Investment Activities    Subtract increases in Plant & Equipment Increase in Gro ($39) Financing Activities    Cash Inflows from Borrowing Decrease in Short-Term Notes ($2) Increase in Long-Term Debt $11     Total $9     Sale of Equity Change in par value $1  Change in Paid-In Capital $3     Total $4     Less: Dividends paid to Shareholders $10  Financing Cash Flows $3  Change in Cash
Background image of page 2
Operating Activities
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}