BRANCO, INC.
Balance Sheets
February 28 and January 31, 2004


February 28, 2004 January 31, 2004
Assets
Cash $42,000 $30,000
Accounts receivable 36,000 53,000
Merchandise inventory 81,000 94,000
Total current assets $159,000 $177,000
Plant and equipment:
Production equipment 166,000 152,000
Less: Accumulated depreciation (30,000) (21,000)
Total assets $295,000 $308,000

Liabilities
Short-term debt $54,000 $44,000
Accounts payable 37,000 41,000
Other accrued liabilities 14,000 24,000
Total current liabilities $105,000 $109,000

Long-term debt 27,000 39,000
Total liabilities $132,000 $148,000
Owners’ Equity
Common stock, no par value
40,000 shares authorized,
30,000 and 28,000 shares issued $104,000 $96,000
Retained earnings:
Beginning balance $64,000 $43,000
Net income for month 5,000 29,000
Dividends (10,000) (8,000)
Ending balance $59,000 $64,000
Total owners’ equity $163,000 $160,000
Total liabilities and owners’ equity $295,000 $308,000


Indirect methid:

Net Income $5000
Decrese in Current assets (ADD) + $13000 (308,000-295,000)
Decrease in Liabilities (Subtract) - $16000 (148000, 132000)

Net cash flow from Opearating activities : $2000

Investing activities : None

Financing Activities

Common stock $8000
Dividends $2000

Add both common stock and dividends $10000

Net cash flow from financing activiites $10000

Net change in cash= Net cash flow opearating + Net cash flow from financing activiites
$2000 + $10000 = $12000

Cash at the begiing of the month $30000
Cash at the end of the month $42000

Am i doing right here?. Please let me know.

72redlevite

your spelling could use some working on

nammu12

Did you give any answer? It lloks like you copied what ever is there in my question. I did not understand what you are trying to say.

nammu12

here is my second answer. I hope this is correct. Can someone verify this answer.
Net Income $5000
Add:

Depreciation Expense : $9000
Decrease in Inventory: $13000
Decrease in Receivables : $17000

Deduct:

Decrease in paybales : ($4000)
Decrease in other accured liabilities : ($10000)

Cash Flow from opearations : $30000

Investing:

Acquisition of Production Equipment ($14,000)

Financing:
Dividends Paid ($10,000)
Proceeds from Common Stock Issued $8,000
Retirement of Long-Term Debt ($12,000)
Short Term Debt $10,000

Cash Flow from Financing ($4,000)

Net cash change in for month $12000


Please can somebody verify the answer is correct or not.