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  • Submitted By: carolsky
  • Date Submitted: 03/30/2014 9:35 PM
  • Category: Business
  • Words: 308
  • Page: 2


XACC/291 Principles of accounting II
Carol Arbelaez
Individual
Exercises – Week Eight

March 23, 2014
Tameka Johnson



















Individual
Exercises – Week Eight
Resources: Ch. 13 & 14 of Financial Accounting
Complete Exercises E13-8 & E14-3.
Submit as a Microsoft® Excel or Word® document

E13-8 Here are comparative balance sheets for Taguchi Company.






1. Net income for 2011 was $103,000.

2. Cash dividends of $45,000 were declared and paid

3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.

4. Common stock was issued for $42,000 cash.

5. No equipment was sold during 2011, but land was sold at cost.

Prepare a statement of cashflows—indirect method.


Cash Flows From Operating Activities:
Net income
Adjustments to reconcile net income to net cash provided by operating activities:
Adjustments for Depreciation
Changes in working capital- Increase in Accounts receivable
Decrease in Inventories
Decrease in Accounts payable

Net cash provided by operating activities

Investing activities

Purchase of equipment

Proceeds from sale of land

Net cash used in investing activities
Financing Activities:

Proceeds from issuance of common stock

Redemption of bonds ($50,000)
Payment of dividends ($45,000)

Net cash provided by financing activities



Net increase in cash & cash equivalents
Cash at beginning of year
Cash at end of year



 
 

$34,000
($9,000)
$19,000
($8,000)
---------------
 


($60,000)
$25,000




$42,000
($50,000)
$(45,000)

----------
 
$103,000

 




-------------
$  139,000
 
 
 


($35,000)






----------
($53,000)
=======

$51,000
$22,000

$73,000











E14-3 The comparative condensed balance sheets of Conard Corporation are presented below.
CONARD CORPORATION

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