Statement of Cash Flows

Charlene-La’shara-Carmelo

1,026,782 879,600

																												ASSETS	2009	2008	.
Cash	99,600	147,000	Sales	1,165,000
Accounts Receivable	131,620	101,250	COGS	(570,000)
Merchandise Inventory	551,312	503,600	Gross Profit	595,000
Prepaid Expenses	2,500	3,750	Operating Expenses
Equipment	315,000	216,000	Depreciation Expense	41,500
Accumulated Depreciation	(73,250)	(92,000)	Other Expenses	264,800
Total Assets		1,026,782		879,600	Total Operating Expenses	(306,300)
288,700
LIABILITIES & EQUITY	Other Gains (Losses)
Accounts Payable	106,282	229,350	Loss on Sale of Equipment	(10,250)
Short-term Notes Payable	20,000	12,000	Income Before Taxes	278,450
Long-term Notes Payable	130,000	97,500	Income Tax Expense	(48,500)
Common Stock, $5 Par	325,500	300,500	Net Income	229,950
PICEPV, CS	75,000	– 0
Retained Earnings	370,000	240,250
Total Liabilities & Equity
Sold equipment for $23,250 cash
Purchased equipment costing $192,750 by paying $60,000 cash and signing a long-term not payable for the balance
Borrowed $8,000 cash by signing a short-term note payable
Paid $100,250 cash to reduce the long term note payable
Issued 2,500 shares of common stock for $40 per share
Declared and paid cash dividend of $100,200

Statement of Cash Flows

16-1

Cash received from customers

Cash provided by/used for operating activities

Investing Activities

Cash paid for merchandise

Net Cash provided by/used for Investing Activities

Financing Activities

Cash paid for operating expenses

Net Cash provided by/used for Financing Activities

Net Cash Decrease

Beginning Cash Balance

Ending Cash Balance

Cash paid for interest

Net Income

Cash paid for income taxes

Net Cash provided by Operating Activities

Statement of Cash Flows

16-1A Question

)

5,375 6,250

Expense

)

)

10,000 6,250 3,750

)

32,500

522,875 451,000 71,875

Sales

)

)

480,875

250,000

21,250

11,625

28,500

Cash paid for merchandise 299,750

136,500

(875)

– 0

Cash paid for operating expenses 135,625

76,625

– 0

12,125

Net Income 73,750

– 0

Depreciation 18,750

– 0

875 Cash paid for income taxes 12,125

Loss on Sale of Equipment 5,125

(15,375)

33,375

																																																																																																																																																																																									ASSETS	2011	2010	Change	.
Cash	53,		875			76,625		(22,750)			Sales	49		6,250
Accounts Receivable	65,000	49,625	1 Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	5,375	COGS	(		250,000
Merchandise Inventory	27		3,750	252,500			21,250	Gross Profit	246,250
Prepaid Expenses			(875)		Operating Expenses
Equipment	159,500	1	10,000	49,500		Depreciation			18,750
Accumulated Depreciation	(34,625)	(44,000)	9,375	Other Expenses			136,500
Total Assets		522,875		451,000		71,875	Total Operating Expenses	(155,250)
91,000
LIABILITIES & EQUITY	Other Gains (Losses)
Accounts Payable	88,125	116,625	(		28,500		Loss on Sale of Equipment	(		5,125
Short-term Notes Payable	Income Before Taxes	85,875
Long-term Notes Payable	93,750	53,750	40,000		Income Tax Expense		(				12,125
Common Stock, $5 Par	168,750	156,250	12,500			Net Income			73,750
PICEPV, CS		32,500						– 0
Retained Earnings	129,750	118,125		11,625
Total Liabilities & Equity
Cash received from Customers				480,875		496,250
		Cash paid for merchandise	(		299,750	Change in Accts Receivable				(15,375)
		Cash paid for operating expenses	(		135,625		Cash received from customers
		Cash paid for income taxes	(12,125)		(447,500)
Cash provided by operating activities				33,375		Cost of Goods Sold
	Investing Activities	Change in merchandise inventory
Sale of Equipment	Change in accounts payable
Purchase of Equipment	(35,000)
Net Cash used by Investing Activities	(23,375)
	Financing Activities	Operating expenses (w/o depreciation)
Short term Notes Payable	3,000	Change in prepaid expenses
Long-term Notes Payable	(40,500)	Change in accrued liabilities
Sale of Common Stock	47,000
Dividend Payment	(51,900)
Net Cash Used by Financing Activities	(42,400)	Interest expense
	Net Cash Decrease	(32,400)	Change in prepaid interest
	Beginning Cash Balance	Change in interest payable
	Ending Cash Balance	44,225		Cash paid for interest
(9,650)
Income tax expense
Change in prepaid income tax
Change in income tax payable
Decrease in Prepaid Expenses
Increase in Accounts Receivable
Increase in Inventory		(21,250)
Decrease in Accounts Payable		(28,500)		(40,375)
	Net Cash provided by Operating Activities

Statement of Cash Flows

16-1A Answer

480,875 Sales 496,250

(15,375)

Cash received from customers 480,875

(12,125) (447,500)

33,375 Cost of Goods Sold 250,000

Investing Activities

21,250

28,500

Cash paid for merchandise 299,750

Financing Activities Operating Expenses 136,500

3,750

(875)

– 0

Cash paid for operating expenses 135,625

Net Cash Decrease (22,750)
Beginning Cash Balance 76,625
Ending Cash Balance

Cash paid for interest

Income Tax Expense 12,125
Net Income 73,750

18,750

875 Cash paid for income taxes 12,125

5,125

(15,375)

(21,250)

(28,500) (40,375)

Net Cash provided by Operating Activities 33,375

Cash Received from Customers
Cash Paid for Merchandise	(299,750)	Subtract Increase in AR
Cash Paid for Operating Expenses	(135,625)
Cash Paid for Income Taxes
Cash provided by/used for operating activities
Add increase in Merchandise Inventory
Sold Equipment	13,625	Add decrease in Accounts Payable
Purchased Equipment	(25,000)
Net Cash provided by/used for Investing Activities	(11,375)
Borrowed Short Term Note Payable	Subtract decrease in Prepaid Expenses
Paid Long Term Note Payable	(31,375)
Sold Stock	45,000
Paid Cash Dividend	(62,125)
Net Cash provided by/used for Financing Activities	(44,750)
53,875
Add Depreciation
Add Decrease in Prepaid Expenses
Add Losses
Subtract Increase in Accounts Receivable
Subtract Increase in Inventory
Subtract Decrease in Accounts Payable

Statement of Cash Flows