Refer PB1-3. Other cash flow information: Additional investments by stockholders $ 34,000 Cash paid to purchase equipment.
Question:
Refer PB1-3.
Other cash flow information:
Additional investments by stockholders…………………… $ 34,000
Cash paid to purchase equipment……………………………. 40,000
Cash paid to suppliers and employees……………………. 1,490,000
Repayments of borrowings…………………………………. 155,000
Cash received from customers……………………………. 1,661,000
Cash received from borrowings……………………………….. 5,000
Dividends paid in cash……………………………………….. 10,000
Required:
1. Did Cheese Factory’s cash balance increase or decrease during the year ended August 31, 2015? Which financial statement shows the reasons for this change?
2. What would Cheese Factory’s 2015 net income have been had it given a 5 percent pay increase to all employees on September 1, 2014? Which financial statement did you use to answer this?
Accounts Payable Accounts Receivable Cash (balance on September 1. 2014) Cash (balance on August 31, 2015) Common Stock Dividends Equipment Notes Payable $145,000 Office Expenses 15,000 75,000 80.000 100,000 10,000 Prepaid Rent Retained Eamings (beginning) Salaries and Wages Expense Salaries and Wages Payable Sales Revenue 95000 50000 410000 955,000 170.000 1,660,000 25,000 530.000 755,000 Supplies 20,000 Utlities Expense
Step by Step Answer:
Req 1 The statement of cash flows shows that the Cheese Fa...View the full answer
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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In order to determine the amount of cash created by operating operations, the indirect technique for preparing the statement of cash flows entails adjusting net income with changes in balance sheet.
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