HW_10 SCF - Homework #10: Statement of Cash Flow (Ch 5 and...

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Homework #10: Statement of Cash Flow (Ch 5 and 23), due on April 21 . Problem 1: Presented below are the 2011 income statement and comparative balance sheet information for China Company. Income Statement For the Year Ended December 31, 2011 Sales revenue $12,000 Operating expenses: Cost of goods sold $7,300 Depreciation 400 Rent 250 Administrative and other 2,200 Total operating expenses 10,150 Income before income taxes 1,850 Income tax expense 740 Net income $ 1,110 Balance Sheet Information Dec. 31, 2011 Dec. 31, 2010 Assets: Cash $2,980 $1,300 Accounts receivable 1,250 980 Inventory 980 900 Prepaid rent 150 100 3,000 2,600 Less: Accumulated depreciation (1,200 ) (800 ) Total assets $7,160 $5,080 Liabilities and shareholders’ equity: Accounts payable $ 500 $ 580 Accrued expenses payable 650 700 Income taxes payable 450 350 Note payable (due 12/31/2012) 2,500 2,000 Common stock 1,500 1,000 Retained earnings 1,560 450 Total liabilities and shareholders’ equity $7,160
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This note was uploaded on 02/22/2012 for the course ACCT 401 taught by Professor Winchel during the Spring '10 term at South Carolina.

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HW_10 SCF - Homework #10: Statement of Cash Flow (Ch 5 and...

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