In thousands of dollars an expense is recognized in

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Unformatted text preview: d in which goods and services are used not necessarily Revenue s and services are used, not necessarily the Sales revenue period in which cash is paid. $ 37,436 Expenses Cost of goods sold $ 26,980 Selling, general and administrative 3,624 Research and development 1,982 Interest e xpense 450 Total expenses Pretax income Income tax expense Net income Chapter One 33,036 $ 4,400 1,100 $ 3,300 Slide 20 MAXIDRIVE CORP. Statement of Retained Earnings For RE Year Ended December 3Di 2009 the = Beginning RE + NI − D, 2009 the Ending RE Year Ended December 31ividends RE NI 1 (in thousands of dollars) Retained earnings, January 1, 2009 $ 6,805 Net income for 2009 3,300 Dividends for 2009 (1,000) Retained earnings, December 31, 2009 $ 9,105 The Statement of Retained Earnings reports the way that net income and the distribution of dividends affect the financial position of the company during a period. Chapter One Slide 21 Statement of Cash Flows Because revenues reported do not always equal cash collected. . . . . . and expenses reported do not always equal cash paid . . . net income is usually not equal to the change in cash for the period. Chapter One Slide 22 MAXIDRIVE CORP. Statement of Cash Flows For the Year Ended December 31, 2009 (in thousands of dollars) Cash flows from operating activities: $ 33,563 Cash collected from customers 1Cash paidof entity and employees . Name to suppliers (30,854) Cash paid statement (450) 2. Title of for interest Cash paid for taxes (1,190) 3. Specific date (Like theactivities statement and Net cash flow from operating income $ Cash statement of retained earnings, this flow from investing activities: Cash paid to purchase equipment $ (1,625) statement covers a specified Net cash flow from investing activities period of time.) Cash Unit from financing activities: 4. flow of measure Cash received from bank loan $ Cash paid for dividends 1,069 (1,625) 1,400 (1,000) Net cash flow from financing activities 400 Net decrease in cash during the year $ Cash at beginning of the year (156) 5,051 Cash at end of the year $ 4,895 Chapter One Slide 23 MAXIDRIVE CORP. The Statement of Cash Flows reports the inflows and Statement of Cash Flows outflows of...
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This note was uploaded on 12/20/2011 for the course ACCT/MGMT 2010 taught by Professor A during the Spring '11 term at HKUST.

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