405CH23SOLUTIONS

405CH23SOLUTIONS - EXERCISE 23-3 (1525 minutes) RODRIQUEZ...

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Unformatted text preview: EXERCISE 23-3 (1525 minutes) RODRIQUEZ COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income.............................................................. $1,050,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense.................................... $ 60,000 Decrease in accounts receivable................. 310,000 Decrease in inventory.................................... 300,000 Increase in prepaid expenses....................... (170,000) Decrease in accounts payable...................... (275,000) Decrease in accrued expenses payable...... (120,000 ) 105,000 Net cash provided by operating activities... $1,155,000 EXERCISE 23-4 (2030 minutes) RODRIQUEZ COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Cash receipts from customers............. $7,210,000 (a) Cash payments....................................... To suppliers..................................... $4,675,000 (b) For operating expenses................. 1,380,000 (c) 6,055,000 Net cash provided by operating activities.............................................. $1,155,000 Computations: (a) Cash receipts from customers Sales................................................. $6,900,000 Add: Decrease in accounts receivable.............................. 310,000 Cash receipts from customers...... $7,210,000 (b) Cash payments to suppliers Cost of goods sold......................... $4,700,000 Deduct: Decrease in inventories... 300,000 Purchases........................................ 4,400,000 Add: Decrease in accounts payable.................................. 275,000 Cash payments to suppliers.......... $4,675,000 (c) Cash payments for operating expenses Operating expenses, exclusive of depreciation............................ $1,090,000* Add: Increase in prepaid expenses............................... $170,000 Add: Decrease in accrued Add: expenses payable............. 120,000 290,000 Cash payments for operating expenses...................................... $1,380,000 *$450,000 + ($700,000 $60,000) EXERCISE 23-13 (3040 minutes) ANDREWS INC. Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Less: Cash received from customers.............. $325,150 a Cash paid to suppliers........................................ $151,000 b Cash paid for operating expenses.................... 82,000 c Cash paid for interest......................................... 11,400 c Cash paid for income taxes............................... 8,750 d 253,150 a Net cash provided by operating activities........ $ 72,000 a Cash flows from investing activities Sale of equipment [$30,000 ($30,000 X .7)] + $2,000.................. 11,000 Purchase of equipment [$154,000 ($130,000 $30,000)].................. (54,000) Purchase of available-for-sale investments..... (17,000...
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405CH23SOLUTIONS - EXERCISE 23-3 (1525 minutes) RODRIQUEZ...

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