B-16.09 Problem

B-16.09 Problem - 760,000 $ Interest on loans 56,000 Income...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
B-16.09 Following is an incorrectly prepared statement of cash flows for Herman Corporation. Review and correct this presentation, using a direct approach. HERMAN CORPORATION Statement of Cash Flows For the year ending December 31, 20X2 Cash balance at January 1, 20X2 175,000 $ Cash receipts during 20X2 Sale of building 800,000 $ Dividend received on investments 10,000 Cash received from customers 2,350,000 Proceeds from issuing stock 1,400,000 4,560,000 Cash payments during 20X2 Purchase of inventory
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 760,000 $ Interest on loans 56,000 Income taxes 124,000 Repayment of long-term note payable 2,000,000 Purchase of equipment 435,000 Selling and administrative expenses 696,000 Dividends on common 175,000 (4,246,000) Cash balance at December 31, 20X2 489,000 $ -----------------------------------------------------------------------------------Noncash investing/financing activities: Bought land by issuing promissory note payable 450,000 $...
View Full Document

This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

Ask a homework question - tutors are online