Review_CFStat_key - Review questions _ solution Acct 2301...

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Review questions _ solution Acct 2301 F09 Prof. Li 1 Details about operating expenses: Depreciation expense: $200,000 Accrued expenses: $550,000 Prepaid rent and insurance: $500,000 1. Compute Brice Corporation's cash collected from customers for the year ended December 31, 2009. $7,900,000 ($8,200,000 – $200,000 increase in accounts receivable – $100,000 decrease in unearned revenue) Unearned revenue increases for cash collected from customers and decreases for sale recognition and decrease. Therefore decrease of $100,000 in unearned revenue suggests cash collected in advance from customers was $100,000 less than the sale revenues recognized from realized unearned revenue. Alternatively, if you want to apply the rules under indirect method, Net Income +/- decrease (increase) in C.A. +/- increase (decrease) in C.L. Sales 8,200,000 – 200,000 – 100,000 = 7,900,000 cash received from custormers 2. Compute Brice Corporation's cash paid to suppliers for inventory for the year ended December 31, 2009. $6,410,000
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This note was uploaded on 02/10/2012 for the course ACCT 2301 taught by Professor Li during the Fall '09 term at University of Central Florida.

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Review_CFStat_key - Review questions _ solution Acct 2301...

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