Ch 3 Homework 2

10 total retained earnings for year less dividends

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Unformatted text preview: Retained Earnings (Year End) $810.00 3 ­5 a Increase a. Increase b. Decrease c. Decrease d. Decrease 3 ­6 Retained Earnings (Beginning of Year) $212.30 Net Income $44.10 [Total retained earnings for year less dividends] Less: Dividends Paid $22.50 Retained Earnings for the Year $66.60 [Year end  ­ beginning retained earnings] Retained Earnings (Year End) $278.90 3 ­7 (a) Beginning cash $55,000 CF ­Operations $50,000 [= ($25,000  ­ 55,000) + 250,000  ­ 170,000] CF ­Investing  ­$250,000 CF ­Financing $170,000 Ed hn cas $25,000 $25 000 3 ­7 (b) Operating CF Net income $115,000 [This is the net income that makes the CF = $50,000] + D&A $10,000 [Proof: $115,000 + $10,000 + $25,000  ­ $100,000 = $50,000] + Inc A/P + Inc Accruals $25,000  ­  ­ Inc in A/R Inc in A/R  ­$100 000  ­$100,000  ­ Inc in invent. Total from Operating Acts $50,000 ­8 EBIT $750,000 Net CF = $450,000 + 200,000 = $650,000  ­ ­ Interest Interest $0 Operating perating CF = [$750,,000 x (1 40%) ...
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