Ch 19 revised part 1 2005

Ch 19 revised part 1 2005 - CHAPTER 19: FINANCIAL STATEMENT...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 19: FINANCIAL STATEMENT ANALYSIS Look at the cash flow statement example on page 659 7. SmileWhite’s bad debt allowance is greater as a percent of receivables. SmileWhite is recognizing greater bad-debt expense than QuickBrush. If actual collection experience will be comparable, then SmileWhite has the more conservative recognition policy.a. Palomba Pizza Stores Statement of Cash Flows For the year ended December 31, 1999 Cash Flows from Operating Activities Cash Collections from Customers $250,000 Cash Payments to Suppliers (85,000) Cash Payments for Salaries (45,000) Cash Payments for Interest (10,000 ) Net Cash Provided by Operating Activities $110,000 Cash Flows from Investing Activities Sale of Equipment 38,000 Purchase of Equipment (30,000) Purchase of Land (14,000 ) Net Cash Used in Investing Activities (6,000) Cash Flows from Financing Activities Retirement of Common Stock (25,000) Payment of Dividends (35,000 ) Net Cash Used in Financing Activities (60,000 ) Net Increase in Cash 44,000 Cash at Beginning of Year 50,000 Cash at End of Year $94,000 19-1
Background image of page 1

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

View Full DocumentRight Arrow Icon
b.
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Ch 19 revised part 1 2005 - CHAPTER 19: FINANCIAL STATEMENT...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online