NITSU Manufacturing Corporation is preparing the annual financial statements for
ID: 2457538 • Letter: N
Question
NITSU Manufacturing Corporation is preparing the annual financial statements for the stockholders. A statement of cash flows must be prepared. The following data on cash flows were developed for the entire year ended December 31, 2009: cash collections from sales, $270,000; cash expended for operating expenses, $180,000; sale of unissued NITSU stock for cash, $30,000; cash dividends declared and paid to stockholders during the year, $22,000; and payments on long-term notes payable, $80,000. During the year, a tract of land held as an investment was sold for $15,000 cash (which was the same price that NITSU had paid for the land in 2008), and $38,000 cash was expended for two new machines. The machines were used in the factory. The beginning-of-the-year cash balance was $63,000.Explanation / Answer
Amount
Amount
DetailsAmount
Amount
Beginning of the year Cash Balance 63,000.00 Add: Receipts Cash Collections from Sales 270,000.00 Sale of unissued NITSU Stock 30,000.00 Sale of Land 15,000.00 378,000.00 Less : Disbursements Cash expended for operations 180,000.00 Cash Dividends Declared & paid 22,000.00 Payments on Long Term Notes Payable 80,000.00 Purchase of Machinery 38,000.00 ( 320,000.00 ) End of the Year CashBalance 58,000.00Related Questions
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