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.

Quote:

---

Originally Posted by nammu12

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.

---

Your spelling could use some working on

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.

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.