Operating activities cash collected from customers

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Operating activities:Cash collected from customers$275,500Cash paid for inventory$195,990Cash paid for salaries35,050Cash paid for other expenses24,300255,340Net cash provided by operating activities$20,160
Chapter 51635–26.(Concluded)(b)Operating activities:Net income$ 5,500Add:Depreciation$16,700Decrease in inventory1,760Increase in salaries payable15018,610Less:Increase in accounts receivable$ 3,200Decrease in accounts payable750(3,950)Net cash provided by operating activities$20,1605–27.Income StatementAdjustmentsStatement ofCash FlowsSales$765,2004,000$761,200Cost of goods sold(375,800)2,8001,200(379,800)Depreciation expense(42,000)+42,0000Salaries expense(115,250)No adjustment(115,250)Interest expense(10,500)200(10,700)Income taxes expense(39,000)– 1,250(40,250)Other expenses(82,150)+ 1,900(80,250)Net income$100,500$134,950(a)Operating activities:Cash collected from customers$761,200Cash paid for inventory$379,800Cash paid for salaries115,250Cash paid for interest10,700Cash paid for income taxes40,250Cash paid for other expenses80,250(626,250)Net cash provided by operating activities$134,950(b) Operating activities:Net income$100,500Add:Depreciation$42,000Decrease in prepaid expenses1,90043,900Less:Increase in accounts receivable$4,000Increase in inventory2,800Decrease in accounts payable1,200Decrease in interest payable200Decrease in income taxes payable1,250(9,450)Net cash provided by operating activities$134,950163
164Chapter55–28.Carter CorporationStatement of Cash FlowsFor the Year Ended December 31, 2008Cash flows from operating activities:Net income...................................................................$ 55,000Adjustments:Depreciation expense...............................................7,000Amortization of patent..............................................4,000Gain on sale of land..................................................(6,000)Decrease in accounts receivable............................2,100Increase in inventory................................................(1,200)Increase in accounts payable..................................1,500Net cash provided by operating activities.................$62,400Cash flows from investing activities:Proceeds from sale of land.........................................$ 35,000Purchase of equipment...............................................(33,200)Net cash provided by investing activities.................1,800Cash flows from financing activities:Retirement of long-term debt.....................................$(40,000)Issuance of bonds.......................................................30,000Issuance of common stock........................................25,000Payment of dividends..................................................(22,500)Net cash used in financing activities.........................(7,500)Net increase in cash.......................................................$56,700Cash balance at beginning of year...............................82,800Cash balance at end of year..........................................$139,5005–29.Cash flows from operating activities:Net income..................................................................$ 35,500Adjustments:Depreciation expense.............................................$ 7,000Increase in accounts receivable............................(2,150)Decrease in accounts payable...............................(2,500)Increase in inventories...........................................(4,500)Increase in other current liabilities........................2,000Decrease in prepaid insurance..............................800650Net cash provided by operating activities...............$36,150
Chapter 51655–30.Income StatementAdjustmentsCash FlowsSales$ 6,000,000$(400,000)$ 5,600,000Increase in receiv-ablesCost of goodssold(2,800,000)60,000(2,156,000)Decrease ininventories140,000Increase in tradepayables420,000Amount of deprecia-tion related tomanufacturing24,000Increase in accruedexpenses related tomanufacturingSelling, general,and administra-tive expenses(2,000,000)8,000(1,822,000)Increase in accruedexpenses related toselling(10,000)Increase in prepaidselling expense180,000Amount of deprecia-tion related to sellingIncome taxes(520,000)48,000(472,000)Increase in taxespayableNet income$680,000$ 1,150,000Cash from operatingactivities5–31.Cash flows from operating activities:Net income...............................................................$75,000Adjustments:Depreciation........................................................$ 50,000Amortization........................................................20,000Decrease in accounts receivable......................7,000Increase in inventory..........................................(5,000)Increase in accounts payable............................4,500

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Term
Spring
Professor
Joh
Tags
Financial Accounting, Balance Sheet, Cash Flow Statement, Depreciation, Generally Accepted Accounting Principles

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