The following information is from the comparative balance sheets of Discovery Tech Corporation at June 30, 2011 AND 2010
(IN THOUSANDS) AT June 30 2011 2010
Current Assets:
Cash $2,750 $2,115
Accounts Receivable 3,000 2,750
Inventory 1,700 1,025
Prepaid Insurance 270 320
Total Current Assets $7,720 $6,210
Current Liabilitieis
Accounts payable $1,800 $1,750
Salaries Payable $3,750 $3,150
Total Current Liabilities $5,550 $4,900
Net income for the year ended Jan 30, 2011, was $425,000. Depreciation expense of $105,000 was included in the operating expenses for the year.
Requirement
Use the indirect method to prepare the cash from operations section of the statement of cash flows for Discovery Tech Corportation for the year ended June 30, 2011
Sheet3 Sheet2 Sheet1 A B C D E G H Name Section F End of Problem Cash from operations: Cash from customers Net increase in cash from operations Statement of Cash Flows Cash paid for taxes Cash from investing activities Purchase of equipment Cash from financing activities Payment of dividend Net increase in cash Net income Decrease in supplies Decrease in accounts receivable Decrease in wages and salaries payable Increase in taxes payable Cash from operating activities Add depreciation Cash paid for advertising Cash paid for employees Cash paid for rent Dividends paid Free cash flow equals Amount Formula 1 Formula 2 Formula 3 Formula 4 Formula 5 Type answers starting here Problem 9-49A Cash paid for supplies Craig’s Service Company For the Year Ended December 31, 2011 Part 1. Direct method Part 1. Indirect method Parts 2,3,4 Part 5. Increase in prepaid advertising Reimers, Financial Accounting 3e 5.00 6.00 7.00 8.00 9.00 10.00 $94,000.00 11.00 12.00 13.00 14.00 15.00 16.00 17.00 18.00 19.00 20.00 21.00 22.00 23.00 24.00 25.00 26.00 27.00 28.00 29.00 $5,460.00 30.00 31.00 32.00 33.00 34.00 35.00 36.00 37.00 38.00 39.00 40.00 41.00 42.00 43.00 44.00 45.00 46.00 47.00 48.00 49.00 50.00 CyberCoach: $10,610 Sheet3 Sheet2 Sheet1 A B C D E G H Name Section F End of Problem Cash from operations: Cash from customers Net increase in cash from operations Statement of Cash Flows Cash paid for taxes Cash from investing activities Purchase of equipment Cash from financing activities Payment of dividend Net increase in cash Net income Decrease in supplies Decrease in accounts receivable Decrease in wages and salaries payable Increase in taxes payable Cash from operating activities Add depreciation Cash paid for advertising Cash paid for employees Cash paid for rent Dividends paid Free cash flow equals Amount Formula 1 Formula 2 Formula…
Attachments:
of_p09-49a.xls