Use the following information to compute net change in cash for a firm: Net income for the year is $43,900 Account receivable increased by $10,420 Inventory increased by $1,875 Depreciation expense for the year is $8,000 Account payable decreased by $5,782 Other current liabilities increased by $3,500 Taxes payable decreased by $1,970 Old equipment with a book value of $2,200 was sold for $1,325 Old appliances were sold for $24,000 at a gain of $4,800 A new machine was purchased for $10,000 1,000 shares of common stock were issued at par value of $10 each and sold at par (for $10 each) Declared and paid dividends of $5,000 Reimbursed $7,000 of an outstanding loan’s capital
Use the following information to compute net change in cash for a firm: Net income for the year is $43,900 Account receivable increased by $10,420 Inventory increased by $1,875 Depreciation expense for the year is $8,000 Account payable decreased by $5,782 Other current liabilities increased by $3,500 Taxes payable decreased by $1,970 Old equipment with a book value of $2,200 was sold for $1,325 Old appliances were sold for $24,000 at a gain of $4,800 A new machine was purchased for $10,000 1,000 shares of common stock were issued at par value of $10 each and sold at par (for $10 each) Declared and paid dividends of $5,000 Reimbursed $7,000 of an outstanding loan’s capital
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Use the following information to compute net change in cash for a firm:
Net income for the year is $43,900
Inventory increased by $1,875
Account payable decreased by $5,782
Other current liabilities increased by $3,500
Taxes payable decreased by $1,970
Old equipment with a book value of $2,200 was sold for $1,325
Old appliances were sold for $24,000 at a gain of $4,800
A new machine was purchased for $10,000
1,000 shares of common stock were issued at par value of $10 each and sold at par (for $10 each)
Declared and paid dividends of $5,000
Reimbursed $7,000 of an outstanding loan’s capital
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