In-Lab 12 SCF with solution

In-Lab 12 SCF with solution - ended December 31, 2010. Show...

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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
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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...
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In-Lab 12 SCF with solution - ended December 31, 2010. Show...

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