Solutions to SCF practice problems

Solutions to SCF practice problems - Solutions to Statement...

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PROBLEM 5-6 (a) LANSBURY INC. Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income . .......................................................... $32,000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense . ................................... 11,000 Gain on sale of investments . ......................... (3,400) Increase in account receivable ($41,600 – $21,200) . ..................................... (20,400 ) (12,800 Net cash provided by operating activities . ........ ) 19,200 Cash flows from investing activities Sale of investments . ............................................ 15,000 Purchase of land . ................................................. (18,000 ) Net cash used by investing activities . ................ (3,000) Cash flows from financing activities Issuance of common stock . ................................ 20,000 Retirement of notes payable . .............................. (16,000) Payment of cash dividends . ................................ (8,200 ) Net cash used by financing activities . ................ (4,200 ) Net increase in cash . ................................................. 12,000 Cash at beginning of year . ........................................ Cash at end of year . ................................................... 20,000
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This note was uploaded on 11/05/2011 for the course ACCT 401 taught by Professor Winchel during the Spring '10 term at South Carolina.

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Solutions to SCF practice problems - Solutions to Statement...

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