Accounting 10 multiple choice and one formal question, 12-1A
chasfl
chapter_12_worksheet-_fin_acct.docx
Problem 12-1A (50 minutes) 25 Pts
Part 1:Complete the heading and then complete the Cash Flow Statement.
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Cash flows from operating activities |
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Net income |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Increase in accounts receivable ($65,000 - $49,625) |
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Increase in inventory ($273,750 - $252,500) |
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Decrease in prepaid expenses ($6,250 - $5,375) |
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Decrease in accounts payable ($116,625 - $88,125) |
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Depreciation expense |
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Loss on disposal of equipment |
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Net cash provided by operating activities |
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Cash flows from investing activities |
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Cash received from sale of equipment |
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Cash paid for equipment |
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Net cash used in investing activities |
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Cash flows from financing activities |
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Cash borrowed on short-term note |
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Cash paid on long-term note |
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Cash received from issuing stock (2,500 x $18) |
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Cash paid for dividends |
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Net cash used in financing activities |
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Net decrease in cash |
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Cash balance at beginning of 2011 |
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Cash balance at end of 2011 |
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Noncash investing and financing activities
Problem 12-1A (Concluded)
Part 2: This should be an in-depth analysis of the cash inflows and outflows for the company and what they could mean presently and in the future.
