For the year ended rydel recordings inc recorded the

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72. For the year ended June 30, 2006, Rydel Recordings, Inc. recorded the following items: cost of goods sold: $465; interest expense: $0; preferred dividends paid: $5; common dividends paid: $10; selling expenses: $10; administrative expenses: $105; depreciation expenses: $80; and sales revenues: $590. Taxes are 40% of taxable income. Prepare an income statement for the year ended June 30, 2006, for Rydel Recordings, Inc. Rydel Recordings, Inc.: Annual Income Statement (in millions of dollars and ending 6/30/06) Sales revenue $ 590 Costs of goods sold 465 Selling expenses 10 Administrative expenses 105 Depreciation expense 80 Interest expense 0 Earnings before taxes (70) Taxes @ 40% 0 Net income (70) Dividends on common and preferred stock 15 Addition to (reduction in) retained earnings $ (85) 73. Brett's accountant presented all of the items in the statement of cash flows in alphabetical order. Please put these items in the correct format for a statement of cash flows for Brett Sporting Goods for the year ended January 31, 2006. All data are in millions of dollars. Accounts payable increase 50 Accounts receivable increase (100) Cash dividends (common stock) (200) Cash and equivalents at beginning of year 200 Cash and equivalents at end of year 300 Depreciation and amortization 300 Increase (decrease) in other long-term liabilities (50) Inventories increase (150) Issuance of long-term debt, net 200 Net cash provided by (used in) financing activities 100 Net cash provided by (used in) investing activities (400) Net cash provided by (used in) operating activities 500 Net income 300 Net increase in cash and equivalents 100 Notes payable increase 150 Purchase of plant and equipment (400) Brett Sporting Goods: Statement of Cash Flows (in $1,000,000) CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 300 Depreciation and amortization 300 Accounts receivable decrease (increase) (100) Inventories decrease (increase) (150) Accounts payable increase (decrease) 50
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Net cash provided by (used in operating activities) 400 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of plant and equipment (400) Net cash provided by (used in) investing activities (400) CASH FLOWS FROM FINANCING ACTIVITIES Notes payable increase 150 Issuance of long-term debt, net 200 Increase (Decrease) in other long-term liabilities (50) Cash dividends (common stock) (200) Net cash provided by (used in) financing activities 100 Net increase (decrease) in cash and equivalents 100 Cash equivalent at beginning of year 200 Cash and equivalent at end of year $ 300 74. Smithey's accountant presented all of the items in the statement of cash flows in alphabetical order. Please put these items in the correct format for a statement of cash flows for Smithey Sporting Goods for the year ended January 31, 2006. All data are in thousands of dollars. Accounts payable increase 50 Accounts receivable increase (100) Cash dividends (common stock) (100) Cash and equivalents at beginning of year 100 Cash and equivalents at end of year 200 Depreciation and amortization 300 Increase (decrease) in other long-term liabilities (50) Inventories increase (150) Issuance of long-term debt, net 200 Net cash provided by (used in) financing activities 100
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