Statement of Cash Flows Problems

Statement of Cash Flows Problems - Statement of Cash Flows...

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Statement of Cash Flows – Indirect Method Ex1: Statement of Cash Flows Problem 2011 2010 Cash and Cash Equivalents $ 12,000 $ 15,000 Accounts Receivable 25,000 22,000 Land 30,000 30,000 Equipment 108,000 50,000 Accumulated Depreciation (20,000) (16,000) Total Debits $155,000 $101,000 ======= ======= Accounts Payable $ 26,000 $ 22,000 Long-Term Notes Payable 50,000 25,000 Common Stock 50,000 40,000 Retained Earnings 29,000 14,000 Total Credits $155,000 $ 101,000 ======= ======= Additional Information: 1) Net Income was $25,000. 3) Equipment that cost $48,000 (and had a book value of $40,000) was sold for $45,000. 4) We borrowed $30,000 using a long-term loan.
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Statement of Cash Flows For the Year Ended December 31, 2011 Operating Activities Net Income $25,000 Depreciation $ 12,000 Increase in Accounts Payable 4,000 Increase in Accounts Receivable (3,000) Gain on Sale (5,000) 8,000 Net Cash Provided by Operating Act. $33,000 Investing Activities Sold equipment $ 45,000 Purchased equipment
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This note was uploaded on 03/07/2012 for the course ACCT 225 taught by Professor Canace during the Spring '08 term at South Carolina.

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Statement of Cash Flows Problems - Statement of Cash Flows...

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