Jfredricks33
Feb 17, 2013, 10:46 AM
The following describes the changes in beginning and ending balance sheet accounts:
Inventory 1500 +
Prepaid Insurance 4100 -
Investments 2600-
Equipment 12000+
Accum. Depreciation 1400+
Interest Payable 1100+
Note Payable 7300-
Unearned Revenue 5000+
Mortgage Payable 6000+
Common Stock 15000+
Additional Information:
Net Income was $29000 and includes a $700 gain from sale of Investments. Dividends declared and paid totaled $11000.
What is the cash provided by/used by the operating section?
MY ANSWER:
Net Income 29000
Increase in inventory (1500)
Decrease in prepaid insurance (4100)
Increase in depreciation expense 1400
Increase in interest payable 1100
Decrease in N/P (7300)
Increase in unearned revenue 5000
Gain on sale of investments (700)
Cash Provided by operating activities = $22,900
Am I correct? Thanks!
Inventory 1500 +
Prepaid Insurance 4100 -
Investments 2600-
Equipment 12000+
Accum. Depreciation 1400+
Interest Payable 1100+
Note Payable 7300-
Unearned Revenue 5000+
Mortgage Payable 6000+
Common Stock 15000+
Additional Information:
Net Income was $29000 and includes a $700 gain from sale of Investments. Dividends declared and paid totaled $11000.
What is the cash provided by/used by the operating section?
MY ANSWER:
Net Income 29000
Increase in inventory (1500)
Decrease in prepaid insurance (4100)
Increase in depreciation expense 1400
Increase in interest payable 1100
Decrease in N/P (7300)
Increase in unearned revenue 5000
Gain on sale of investments (700)
Cash Provided by operating activities = $22,900
Am I correct? Thanks!