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Student Name: Class: Problem 15-10 EATON COMPANY Statement of Cash Flows For the Year Ended December 31, 2008 Operating activities: Net income...

Student Name:
Class:
Problem 15-10

EATON COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2008

Operating activities:
Net income
Adjustments needed to convert net income to a cash basis:









Net cash provided by operating activities

Investing activities:



Net cash used for investing activities

Financing activities:



Net cash used for financing activities
Net decrease in cash
Cash balance, January 1, 2008
Cash balance, December 31, 2008


EATON COMPANY
Worksheet

Cash
Source Flow Adjust- Adjusted Classi-
Change or Use? Effect ments Effect fication
Assets (except cash and cash equivalents)
Current assets:



Noncurrent assets:



Liabilities, Contra-assets, and Stockholders' Equity
Contra-assets:

Current liabilities:


Noncurrent liabilities:


Stockholders' equity:

Retained earnings:



Additional entries




Total

Student Name: Class: Problem 15-10 EATON COMPANY Statement of Cash Flows For the Year Ended December 31, 2008 Operating activities: Net income Adjustments needed to convert net income to a cash basis: Net cash provided by operating activities Investing activities: Net cash used for investing activities Financing activities: Net cash used for financing activities Net decrease in cash Cash balance, January 1, 2008 Cash balance, December 31, 2008 EATON COMPANY Worksheet Cash Source Flow Adjust- Adjusted Classi- Change or Use? Effect ments Effect fication Assets (except cash and cash equivalents) Current assets: Noncurrent assets: Liabilities, Contra-assets, and Stockholders' Equity Contra-assets: Current liabilities: Noncurrent liabilities: Stockholders' equity: Retained earnings: Additional entries Total
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Given Data P15-10: EATON COMPANY Comparative Balance Sheet December 31, 2008, and 2007 2008 2007 Assets Cash $4 $11 Accounts receivable 310 230 Inventory 160 195 Prepaid expenses 8 6 Plant and equipment 500 420 Accumulated depreciation (85) (70) Long-term investments 31 38 Total assets $928 $830 Liabilities and Stockholders' Equity Accounts payable $300 $225 Accrued liabilities 70 80 Bonds payable 195 170 Deferred income taxes 71 63 Common stock 160 200 Retained earnings 132 92 Total liabilities and stockholders' equity $928 $830 EATON COMPANY Income Statement For the Year Ended December 31, 2008 Sales $750 Less cost of goods sold 450 Gross margin 300 Selling and administrative expenses 223 Net operating income 77 Nonoperating items: Gain on sale of investments $5 Loss on sale of equipment 2 3 Income before taxes 80 Less income taxes 24 Net income $56 Equipment cost $30 Equipment selling price $18 Accumulated depreciation of equipment $10 Long-term investment purchase $7 Long-term investment sale $12 Cash dividends $16 Check figure: (1) Net cash provided by operating activities $104
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