smartangel88
Feb 9, 2008, 05:49 AM
Selected Balance Sheet Data 2008 2007
Cash ? $113,525
Accounts Receivable $36,000 $42,000
Inventories $28,000 $25,000
Accounts Payable $31,000 $35,000
Salaries Payable $2,000 $1,000
Equipment $60,000 $40,000
Accumulated Depreciation $12,000 $16,000
Bonds Payable $50,000 $100,000
Common Stock $150,000 $100,000
Retained Earnings $38,000 $20,000
Income Statement Data 2008
Net Sales $420,000
Cost of Goods Sold $300,000
Salaries Expense $84,000
Net Income $30,000
Gain on Sale of Equipment
(included in net income above) $2,000
Additional information:
Equipment with a cost of $15,000 and a book value of $3,000 was sold for $5,000
During 2008.
Common stock was issued to retire bonds payable during 2008.
The only items affecting retained earnings in 2008 were net income and dividends
Declared and paid
Questions:
If the indirect method is used to prepare the statement of cash flows, how much net cash
Was used for or provided by operating activities?
A. $6,000 provided by C. $36,000 provided by
B. $6,000 used for D. $36,000 used for
What is the cash balance at December 31, 2008?
A. $57,525 C. $113,525
B. $107,525 D. $119,525
I did the problems and both of my answers doesn't match at all, somebody please help me...
Cash ? $113,525
Accounts Receivable $36,000 $42,000
Inventories $28,000 $25,000
Accounts Payable $31,000 $35,000
Salaries Payable $2,000 $1,000
Equipment $60,000 $40,000
Accumulated Depreciation $12,000 $16,000
Bonds Payable $50,000 $100,000
Common Stock $150,000 $100,000
Retained Earnings $38,000 $20,000
Income Statement Data 2008
Net Sales $420,000
Cost of Goods Sold $300,000
Salaries Expense $84,000
Net Income $30,000
Gain on Sale of Equipment
(included in net income above) $2,000
Additional information:
Equipment with a cost of $15,000 and a book value of $3,000 was sold for $5,000
During 2008.
Common stock was issued to retire bonds payable during 2008.
The only items affecting retained earnings in 2008 were net income and dividends
Declared and paid
Questions:
If the indirect method is used to prepare the statement of cash flows, how much net cash
Was used for or provided by operating activities?
A. $6,000 provided by C. $36,000 provided by
B. $6,000 used for D. $36,000 used for
What is the cash balance at December 31, 2008?
A. $57,525 C. $113,525
B. $107,525 D. $119,525
I did the problems and both of my answers doesn't match at all, somebody please help me...