Arduous Company solution

Arduous Company solution - (23) Purchase of investments...

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…….Arduous Company Statement of Cash Flow For the year ended December 31, 2005 Cash flow from operations Cash collected from customers ($410 + 2 Decrease in A/R - 6 Accounts W/O ) $406 Cash collected on investment revenue (13 – 2 Increase in Investment Revenue Receivable ) 11 Cash paid out to suppliers ($180 COGS + 5 Increase in inventory + 15 Decrease in A/P ) (200) Cash paid out for salaries ($65 Salary Expense + 5 Decrease in Salaries Payable ) (70) Cash paid out for insurance ($7 Insurance Expense – 4 Decrease in Prepaid Insurance ) (3) Cash paid out on interest (28 – 4 Increase in Bond Interest Payable – 3 Discount on Bonds ) (21) Cash paid out on taxes ($36 Income Tax Expense - 1 Increase in Income taxes payable ) (35) 88 Cash flow from investing Proceeds on sale of equipment 17 Purchase of land
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Unformatted text preview: (23) Purchase of investments (31) (37) Cash flow from financing Issue of preferred shares 75 Repayment of bonds (60) Cash dividends paid (22) (7) Increase in cash 44 Cash, beginning of year 81 Cash, end of year $125 Cash flow from operations - indirect (reference only, not required) Net income $67 Adjust for non cash items Depreciation 12 Patent amortization 2 Amortization of discount on bonds payable 3 Loss on disposal of equipment 18 Changes in working capital Decrease in A/R - net 4 Increase in investment revenue receivable (2) Increase in inventory (5) Decrease in prepaid insurance 4 Decrease in accounts payable (15) Decrease in salaries payable (5) Increase in bonds interest payable 4 Increase in income taxes payable 1 $88...
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This note was uploaded on 12/18/2011 for the course BUSINESS 450 taught by Professor Smith during the Winter '10 term at Ryerson.

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Arduous Company solution - (23) Purchase of investments...

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