Week 5 P23-7 part b

Week 5 P23-7 part b - Sales $1,255,250 Less: Increase in...

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(b) George Winston Company STATEMENT OF CASH FLOWS For the Year Ended May 31, 2008 Cash flows from operating activities Cash received from customers $1,233,250 Cash paid To suppliers $674,000 To employees 276,850 For other expenses 10,150 For interest 73,000 For income taxes 43,000 1,077,000 Net cash provided by operating activities 156,250 Cash flows from investing activities Purchase of plant assets (48,000) Cash flows from financing activities Cash received from common stock issue $ 40,000 Cash paid For dividends (105,000) To retire bonds payable (30,000 ) Net cash used by financing activities (95,000 ) Net increase in cash 13,250 Cash, June 1, 2007 20,000 Cash, May 31, 2008 $ 33,250
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Note 1 : Noncash investing and financing activities: Issuance of common stock for plant assets $50,000. Calculations : Collections from customers
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Unformatted text preview: Sales $1,255,250 Less: Increase in accounts receivable 22,000 Cash collected from customers $1,233,250 Cash paid to suppliers Cost of merchandise sold $722,000 Less: Decrease in merchandise inventory 40,000 Increase in accounts payable 8,000 Cash paid to suppliers $674,000 Cash paid to employees Salary expense $252,100 Add: Decrease in salaries payable 24,750 Cash paid to employees $276,850 Cash paid for other expenses Other expenses $ 8,150 Add: Increase in prepaid expenses 2,000 Cash paid for other expenses $10,150 Cash paid for interest Interest expense $75,000 Less: Increase in interest payable 2,000 Cash paid for interest $73,000 Cash paid for income taxes: Income tax expense $43,000...
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This note was uploaded on 03/01/2012 for the course ACC all taught by Professor All during the Spring '12 term at University of Phoenix.

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Week 5 P23-7 part b - Sales $1,255,250 Less: Increase in...

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