Comparative BalanceSheet 2007 2006 Income Statement for 2007 Cash 4400 3550 Sale

Question

Comparative BalanceSheet 2007 2006 Income Statement for 2007 Cash 4400 3550 Sales Revenue 355000 Accounts receivable 4100 5300 Cost of Good Sold 241400 Inventory 5700 4100 Gross Profit 113600 Prepaid advertising 900 1200 Operating expenses Buildings and furnishings 20000 20000 Advertising 8300 Accumulated depreciation -6000 -5000 Depreciation 1000 Land 14000 10000 Insurance 3500 Total Assets 43100 39150 Rent 31200 Rent Payable 2800 2600 Wages 57380 Taxes Payable 1600 2000 Operating income 12220 Wages Payable 2000 900 Interest Expense 1450 Loan Payable, long term 14000 22250 Income Before Tax 10770 Common Stock 16000 10000 Taxes 3770 Retained Earnings 6700 1400 Net Income 7000 Total Liabilities and Equity 43100 39150 Prepare a statement of cash flows ingood form using the indirect format. Rueben Corporation has completed itscomparative balance sheet and income statement, shown at the top of the page, at year end2007. Additional Information: 1. A payment of 8250 was made onthe loan principal during the year. 2. Just before the year end, adividend was distributed to stockholders. 3. A parcel of land was acquiredearly in the year. 4. New shares of common stock weresold during the year. Comparative BalanceSheet 2007 2006 Income Statement for 2007 Cash 4400 3550 Sales Revenue 355000 Accounts receivable 4100 5300 Cost of Good Sold 241400 Inventory 5700 4100 Gross Profit 113600 Prepaid advertising 900 1200 Operating expenses Buildings and furnishings 20000 20000 Advertising 8300 Accumulated depreciation -6000 -5000 Depreciation 1000 Land 14000 10000 Insurance 3500 Total Assets 43100 39150 Rent 31200 Rent Payable 2800 2600 Wages 57380 Taxes Payable 1600 2000 Operating income 12220 Wages Payable 2000 900 Interest Expense 1450 Loan Payable, long term 14000 22250 Income Before Tax 10770 Common Stock 16000 10000 Taxes 3770 Retained Earnings 6700 1400 Net Income 7000 Total Liabilities and Equity 43100 39150 Prepare a statement of cash flows ingood form using the indirect format. Rueben Corporation has completed itscomparative balance sheet and income statement, shown at the top of the page, at year end2007. Additional Information: 1. A payment of 8250 was made onthe loan principal during the year. 2. Just before the year end, adividend was distributed to stockholders. 3. A parcel of land was acquiredearly in the year. 4. New shares of common stock weresold during the year.

Explanation / Answer

Cash FlowUsing the Indirect Format

Cash FlowUsing the Indirect Format

Net Income as per Income statement 7,000.00 Cash from / ( Used by ) Operating activities Add: Decrease in Accounts Receivable 1,200.00 Decrease in Prepaid Advertising 300.00 Increase in Rent Payable 200.00 Increase in wages Payable 1,100.00 Depreciation 1,000.00 10,800.00 Less: Increase in inventory 1,600.00 Decrease in Taxes Payable 400.00 (2,000.00) Cash fromOperating Activities 8,800.00 Cash from / ( Used by ) Investing Activities Purchase ofLand (4,000.00) Cash from /( Used by ) Financing Activities Sale of Common Stock 6,000.00 Payment of Cash Dividend (1,700.00) Repayment ofLoan (8,250.00) (3,950.00) Increase in Cash 850.00 Add: Opening Cash Balance 3,550.00 Cash Balanceas on year ended 2007 4,400.00

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.