Chapter 5 Homework Solutions

# Chapter 5 Homework Solutions - Chapter 5 Homework Solutions...

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Chapter 5 Homework Solutions E5-8. Req. 1. Beginning RE + Net income - Dividends = Ending RE Dividends = Beginning RE + Net income - Ending RE Dividends = \$177,277,000 + 50,371,000 - 227,648,000 = 0 Oakley paid no dividends during the year. Req. 2. Cash (+A) . ........................................................ 4,323,000 Common stock (\$688,000 – 686,000) (+SE) 2,000 Paid-in capital (\$40,805,000 – 36,484,000) (+SE) 4,321,000 E5-10. Case A Case B Case C Case D Case E Sales revenue \$900 \$700 \$410 \$1,190* \$750* Cost of goods sold 400 * 370 200 * 500 310 Gross margin 500 330* 210* 690* 440 Operating expenses: Selling expense 200* 150 80 400 250 Administrative expense 100 90 * 60 100 80 Total expenses 300 * 240 * 140 * 500 * 330 * Pretax income 200 90 70* 190 110* Income tax expense 30 * 30 20 40 30 Net income \$170 \$60 * \$50 \$150 * \$80 *Amounts not given in the exercise.

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E5-15. BLACKWELL CORPORATION Statement of Cash Flows For the Year Ended December 31, 2006 From Operating Activities Net income . ................................................................. \$18,000 Increase in accounts receivable . ................................. (10,000) Decrease in inventory . ................................................. 2,000 Decrease in accounts payable . ................................... (4,000
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Chapter 5 Homework Solutions - Chapter 5 Homework Solutions...

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