The balance sheet and income stmt for xyz bouique are presented along with some

Question

The balance sheet and income stmt for xyz bouique are presented along with some additional information abt the accounts. U R to answer the question that follow cooncerning cash flow for the period.
BALANCE SHEET

------------------------------------DEC 31---------------
2011 2010
ASSETS
current assets
cash $450000 $364000
A/C receivable- net $692000 625000
Inventory 723000 610000
prepaid ex 50000 70000
------------- ------------
Total urrent asset 1,915,000 1669000
Long term investment 150000 20000
property plant &investment 1622000 815000
Less: Accumulated deprecia (100,000) (75,000)
------------ ----------
1522000 740000
------------ ------------
Total assets $3587000 2429000
LIABILITIES & STOCKHOLDERS EQUITY
CURRENT LIABILITY
A/c payable 399000 451000
Accrued expenses 185000 179000
Dividends payable 50000 _
------------ ----------
Total current liability 634000 630000
notes payable-due 2014 750000 _
STOCKHOLHERS EQUITY

Common sock 1400000 1300000
Retained Earning 803000 499000
-------- --------

Total Stockholders equity 2203000 1799000
------------ -----------
Tatal liabiliy &sockholders eq 3587000 2429000
======== ========

Income Stmt
YR ended dec 31
2011 2010
---------------------------------------------------------
Net credit sales 7200000 6500000
COGS 4320000 39000000
------------ ---------------
GP 2880000 2600000
Operating Expenses 2376000 2145000
------------- -------------
Net Income 504000 455000



a) All A/c receivable and A/C payble are related to trade merchandise. Accounts paybble are recorded net and always are paid to take all the discounts allowed. The allowance for doubtfull accounts at the end of 2011 was the same as aaaaat the end of 2010; no receivable were charged against the allowance during 2011.
b) The proceeds from the note payable were used to finance a new warehouse. Capital stock was sold to provide additional working capital.

Required:
1) Calculate the cash collected during 2011 from A/c receivable ?

Explanation / Answer

cash outflows from investing activities during 2011= change in long term investments+change in property and plant = 150000-20000+1622000-815000 = 937,000

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