HW_10_Solutions

HW_10_Solutions - Solutions to Homework 10 Raffaele B....

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Solutions to Homework 10 Due November 18, 2010 Raffaele B. Mari, CPA Econ 25 – Econ of Acctg. EXERCISE 12-6 FELIX CORPORATION Statement of Cash Flows—Indirect Method For the Year Ended December 31, 2010 Cash flows operating activities Net income . ................................................................. $284,100 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense. ......................................... $187,000 Increase in income tax payable . ......................... 4,700 Decrease in accounts payable . ........................... (3,700) Increase in accounts receivable . ........................ (8,200) Increase in inventory . .......................................... (11,000) 168,800 Net cash provided by operating activities . .. 452,900 Cash flows from investing activities Sale of land . ......................................................... 35,000 Purchase of building . .......................................... (129,000) Net cash used by investing activities . ......... (94,000) Cash flows from financing activities Issuance of bonds . .............................................. 200,000 Payment of dividend . .......................................... (12,000) Purchase of treasury stock . ................................ (32,000)
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HW_10_Solutions - Solutions to Homework 10 Raffaele B....

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