Rolling Meadows Country Club, Inc., is a privately owned corporation that operates a golf club. Rolling Meadows
Question:
Rolling Meadows Country Club, Inc., is a privately owned corporation that operates a golf club. Rolling Meadows reported the following inflows and outflows of cash during 2009:
Net income ..................$106,000
Decrease in accounts receivable, dues ........ 4,000
Increase in pro shop inventory ........... 28,600
Increase in prepaid insurance ........... $ 15,800
Increase in accounts payable ............ 11,400
Decrease in wages payable ............ 10,400
Increase in income taxes payable ........... 7,500
Cash paid for new golf carts ............ 123,000
Cash received from sale of used golf carts ...... 7,000
Depreciation expense, buildings .......... 49,000
Depreciation expense, golf carts .......... 23,000
Proceeds from issuance of note payable ....... 35,000
Payment on mortgage payable ............ 45,000
Cash received from issuance of common stock ..... 38,500
Payment of cash dividends ............ 40,000
Rolling Meadows had cash on hand at 1/1/09 of ..... $10,300.
Required:
Prepare a properly formatted statement of cash flows using the indirect method.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Cornerstones of Financial and Managerial Accounting
ISBN: 978-0324787351
1st Edition
Authors: Rich Jones, Mowen, Hansen, Heitger