The following combined income and retained earnings statement, along with selected balance sheet data, is provided for
Question:
Instructions:
1. Using the direct method, compute the amount of net cash provided by (used in) operating activities for Gemini Corporation for 2011.
2. What is the impact of dividends paid on net cash flow from operations?Explain.
Transcribed Image Text:
Gemini Corporationn Combined Income and Retained Earnings Statement For the Year Ended December 31, 2011 Net sales revenue $340,000 6,000 $346,000 Other revenues Total revenues Expenses: Cost of goods sold $188.000 52,600 3,500 3,200 Selling and administrative expenses Interest expense Total expenses Income before income taxes Income taxes Net income Retained earnings, January, 201I 257.300 88,700 21,850 66,850 56,000 $122850 16,000 $106.850 Dividends declared and paid Retained earnings, December 31, 2011 Gan on sae of equipment (cost, $20,000, book value, $12000 sales price, $18,000) Balance Sheet Amounts Beginning of Year End of Year Accounts receivable Inventory Prepaid expenses Accounts payable.. Interest payable Income taxes payable $47,000 73.400 4,500 31,800 5,500 2,900 $53,000 68,100 3.600 38,300 4.300 7.200
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1 Cash flows from operating activities Cash receipts from customers 334000 a Cash payments for Inven...View the full answer
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Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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