{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

In-Lab 12 SCF with solution

In-Lab 12 SCF with solution - ended Show everything you...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCT 401L Lab Assignment #12 Statement of Cash Flow Name____________________ Date 4/22/11 Problem 1: Presented below are the comparative statements of financial position for Greene, Inc. as of December 31, 2009 and 2010. Greene, Inc. Statements of Financial Position December 31, 2010 2009 Cash $ 180,000 $ 82,000 Account receivables 175,000 185,000 Investments 52,000 69,000 Property plant and equipment 298,000 240,000 Less: Accumulated depreciation (106,000 ) (89,000 ) Total Assets $599,000 $487,000 Current Liabilities $ 150,000 $ 135,000 Common stock 160,000 160,000 Retained earnings 289,000 192,000 Total Liabilities and Stockholders’ Equity $599,000 $487,000 Additional information for 2010: 1. Investments were sold at a loss (not extraordinary) of 7,000. 2. No property plant or equipment was sold during the year. 3. Greene paid cash dividends of $73,000 during the year. 4. Net income was $170,000 Required: On the following page, prepare a Statement of Cash Flows using the Indirect Method for the year
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ended December 31, 2010. Show everything you would normally see on the statement of cash flows. Solution to Problem 1 Greene, Inc. Statement of Cash Flows – Indirect Method For the Year Ended December 31, 2010 Cash flows from operating activities Net income $170,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense $17,000 Loss on sale of investments 7,000 Decrease in accounts receivable 10,000 Increase in current liabilities 15,000 49,000 Net cash provided by operating activities 219,000 Cash flows from investing activities Sale of investments [($69,000 – $52,000) – $7,000] 10,000 Purchase of equipment (58,000 ) Net cash used by investing activities (48,000) Cash flows from financing activities Payment of cash dividends (73,000 ) Net increase in cash 98,000 Cash at beginning of year 82,000 Cash at end of year $180,000...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern