Personal Finance Case 6-1
EXERCISE 6-3 (15-- 20 minutes) (a) (b) (c) (d) (e) 4. 3. 4. 3. 1. (f) (g) (h) (i) (j) 1. 5. 4. 5. 4. (k) 1. (l) 2. (m) 2.
EXERCISE 6-8 (35-- 45 minutes) CONSTANTINE CAVAMANLIS INC. Statement of Cash Flows For the Year Ended December 31, 2008 Cash flows from operating activities Net income ............................................................. Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense .............................................. Increase in accounts receivable .................... Increase in accounts payable ................................. Net cash provided by operating activities ........... Cash flows from investing activities Purchase of equipment ......................................... …show more content…
Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense........................... Increase in accounts receivable .......... Increase in inventory ............................ Decrease in accounts payable............. Increase in income taxes payable ....... Net cash provided by operating activities ............................................ Cash flows from investing activities Sale of equipment ........................................ Purchase of equipment................................ Net cash provided by investing activities ............................................ Cash flows from financing activities Issuance of bonds........................................ Payment of cash dividends ......................... Net cash used by financing activities ............................................ Net decrease in cash ........................................... Cash at beginning of period ............................... Cash at end of period .......................................... …show more content…
$ 8,000 (14,000) (13,000) (12,000) 6,000
(25,000) 16,000
10,000 (7,000) 3,000 10,000 (36,000) (26,000) (7,000) 33,000 $26,000
PROBLEM 6-5 (Continued) (b) (1) $16,000 ÷
$57,000* + $63,000**
EXERCISE 6-8 (35-- 45 minutes) CONSTANTINE CAVAMANLIS INC. Statement of Cash Flows For the Year Ended December 31, 2008 Cash flows from operating activities Net income ............................................................. Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense .............................................. Increase in accounts receivable .................... Increase in accounts payable ................................. Net cash provided by operating activities ........... Cash flows from investing activities Purchase of equipment ......................................... …show more content…
Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense........................... Increase in accounts receivable .......... Increase in inventory ............................ Decrease in accounts payable............. Increase in income taxes payable ....... Net cash provided by operating activities ............................................ Cash flows from investing activities Sale of equipment ........................................ Purchase of equipment................................ Net cash provided by investing activities ............................................ Cash flows from financing activities Issuance of bonds........................................ Payment of cash dividends ......................... Net cash used by financing activities ............................................ Net decrease in cash ........................................... Cash at beginning of period ............................... Cash at end of period .......................................... …show more content…
$ 8,000 (14,000) (13,000) (12,000) 6,000
(25,000) 16,000
10,000 (7,000) 3,000 10,000 (36,000) (26,000) (7,000) 33,000 $26,000
PROBLEM 6-5 (Continued) (b) (1) $16,000 ÷
$57,000* + $63,000**