Chapter4_HW

Chapter4_HW - Chapter 4 The Statement of Cash Flows...

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Chapter 4 The Statement of Cash Flows Homework 1. Indicate which of the following current assets and current liabilities are operating accounts (O) and thus included in the adjustment of net income to cash flow from operating activities and which are cash (C)k investing (I), or financing (F) activities (1 point) (a) Accounts payable (b) Accounts receivable (c) Notes payable to banks (d) U.S. treasury bills (e) Accrued expenses (f) Inventory (g) Note receivable (h) Current portion of long-term debt (i) Dividends payable (j) Income taxes payable (k) Interest payable (l) Certificates of deposit 1
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2. The following comparative balance sheets and income statements are available for Evangel Inn, Prepare a statement of cash flow for 2007 using the indirect method. (1 point) Evangel Inn Balance Sheets Ended Dec 31, 2006 and 2007 2006 2007 Assets Current assets Cash $20,000 $60,000 Marketable securities 20,000 25,000 Accounts receivables 90,000 115,000 Inventory 15,000 20,000 Prepaid expenses 15,000 5,000 Totasl current assets 160,000 225,000 Investments 150,000 450,000 Property and equipment Land 450,000 450,000 Buildings 2,000,000 2,000,000 Equipment 500,000 610,000 Less: Accumulated depreciation (1,000,000) (1,300,000)
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Chapter4_HW - Chapter 4 The Statement of Cash Flows...

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