AC202 Week 3 Homework Answers

AC202 Week 3 Homework Answers - Problem 16-1A(50 minutes...

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Problem 16-1A (50 minutes) Part 1 GEORGIA COMPANY Statement of Cash Flows For Year Ended December 31, 2009 Cash flows from operating activities Net income. .................................................................. $120,575 Adjustments to reconcile net income to net cash provided by operating activities: Increase in accounts receivable ($65,840 - $56,000). ...... (9,840) Increase in inventory ($277,000 - $252,000). .................... (25,000) Decrease in prepaid expenses ($1,500 - $1,000). .......... 500 Decrease in accounts payable ($113,000 - $42,965). ..... (70,035) Depreciation expense. ............................................... 20,000 Loss on disposal of equipment. ................................. 5,875 Net cash provided by operating activities. ..................... $ 42,075 Cash flows from investing activities Cash received from sale of equipment. ......................... 11,625 Cash paid for equipment. .............................................. (35,000 ) Net cash used in investing activities. ............................. (23,375) Cash flows from financing activities Cash borrowed on short-term note. .............................. 3,000 Cash paid on long-term note. ........................................ (40,500) Cash received from issuing stock (2,350 x $20). ............. 47,000 Cash paid for dividends. ............................................... (51,900 ) Net cash used in financing activities. ............................ (42,400
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This note was uploaded on 11/11/2011 for the course AC 202 taught by Professor Nancyeverett during the Spring '09 term at Park.

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AC202 Week 3 Homework Answers - Problem 16-1A(50 minutes...

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