The equitymethod means that the washington post will

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Unformatted text preview: 00 575,000 $ $ P14–19 Continued Mick’s Photographic Equipment Balance Sheet December 31, 2011 A s s e ts Current assets: Cash Marketable securities (net of allowance for unrealized losses of $25,000) Accounts receivable (net of allowance for doubtful accounts of $70,400) Inventory Prepaid insurance Total current assets 2,749,200 Land…. Fixed assets (net of accumulated depreciation of $140,000) 610,000 Total assets 3,399,200 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Miscellaneous payables Dividends payable Total current liabilities 1,100,000 Bonds payable (including associated premium of $9,060) 29,060 Stockholders' equity: Preferred stock Common stock Additional paid­in capital: Preferred stock Common stock Retained earnings Total stockholders' equity 2,270,140 Total liabilities and stockholders' equity 3,399,200 $ 1,524,600 225,000 309,600 630,000 60,000 $ 40,000 $ $ 925,000 75,000 100,000 $ $ 100,000 765,000 2,000 775,000 628,140 $ P14–19 Continued d. Direct method Mick’s Photographic Equipment Statement of Cash Flows For the Year Ended December 31, 2011 Cash flows from operating activities: Cash collections from customers Cash paid for inventory Cash paid for insurance Cash paid for interest Cash paid for miscellaneous expenses $ 2,550,000 (1,075,000) (80,000) (1,600) (500,000) Net cash increase (decrease) due to operating activities $ 893,400 Cash flows from investing activities: Purchase of marketable securities Purchase of fixed assets $ (250,000) (750,000) Net cash increase (decrease) due to investing activities (1,000,000) Cash flows from financing activities: Proceeds from bond issue Proceeds from preferred stock issue Proceeds from common stock issue $ 29,200 102,000 1,500,000 Net cash increase (decrease) due to financing activities 1,631,200 $ Net increase in cash 1,524,600 Beginning cash balance, January 1, 2011 0 Ending cash balance, December 31, 2011 $ 1,524,600 P14–19 Concluded Indirect method Mick’s Photographic Equipment Statement of Cash Flows For the Year Ended December 31, 2011 Cash flows from...
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This homework help was uploaded on 03/03/2014 for the course ACCT 5053 taught by Professor Staff during the Fall '08 term at Oklahoma State.

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