Review for AC202

Earnings january 1 2000 2nd start with beginning

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Unformatted text preview: ase in cash for month $ 4,125 Cash balance, May 1, 2003 Cash balance, May 31, 2003 $ 4,125 ABC Company Statement of Cash Flows For the Month Ended Dec 31, 2002 Cash flows from operating activities: Cash received from revenue transactions $ 750 Cash paid for expenses (50) Net cash provided by operating activities $ 700 Cash flows from investing activities: Purchase of equipment $ (2,500) Purchase of truck (2,000) Collection for sale of office desk 75 Payment on new computer (150) Net cash used by investing activities (4,575) Cash flows from financing activities: Sale of common stock 8,000 I ncrease in cash for month $ 4,125 Cash balance, May 1, 2003 3,562 Cash balance, May 31, 2003 $ 7,687 Statement of Cash Flows.. Statement of Cash Flows.. Example from pg. 17 of your text Agrees Agrees with with Balance Sheet Sheet N ow—let’s complicate things a bit! Classified Balance Sheet Classified Balance Sheet Generally contains the following standard classifications under ASSETS: Current Assets Long­Term Investments Property, Plant, and Equipment Intangible Assets Classified Balance Sheet Classified Balance Sheet Generally contains the following standard classifications under ASSETS: Current Assets Long­Term Investments Property, Plant, and Equipment Intangible Assets Current Assets Assets that are expected to be converted to cash or used up within one year. Current assets are listed in order of liquidity. Examples: Cash Short­term investments Notes Receivable Receivables Accounts Receivable Inventories Merchandise for sale Supplies Office supplies, cleaning supplies, etc. Prepaid expenses Unexpired insurance, advertising that has not run, etc. CSU CORPORATION Balance Sheet December 31, 2004 Assets Current Assets Cash Accounts receivable Supplies 1,800 Total Current Assets $ 1,400 4,000 $ 7,200 2nd - list the current assets and total Classified Balance Sheet Classified Balance Sheet Generally contains the following standard classifications under ASSETS: Current Assets Long­Term Investments Property, Plant, and Equipment Intangible Assets Long­Term Investments Assets that can be converted into cash, but whose conversion is not expected within one year. Assets not intended for use within the business. Example: Investments of stocks and bonds of other corporations. Investments in long-term assets such as land or buildings that are not currently being used in the company’s operating activities. CSU CORPORATION Balance Sheet December 31, 2004 Assets Current Assets Cash Accounts receivable Supplies 1,800 Total Current Assets Long Term Investments Land (not used in business) IBM stock Total Long Term Investments $ 1,400 4,000 $ 7,200 $10,000 1,500 11,500 3rd - list the long term investments and total Classified Balance Sheet Classified Balance Sheet Generally contains the following standard classifications under ASSETS: Current Assets Long­Term Investments Property, Plant, and Equipment Intangible Assets Property, Plant, and Equipment Assets with relatively long useful lives. Assets used in operating the business. Examples: land buildings machinery delivery equipment furniture and fixtures CSU CORPORATION Balance Sheet December 31, 2004...
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