Saturday, June 19, 2010

Help with a cash flow problem? (Indirect method - operating section)?

Trying to do this sample problem, studying for the midterm. I know the answer $19,340, I just don%26#039;t know how to get there. I know the simple accounts to work with, but this problem has me lost.



Net income: 10,000, Depreciation,Depl,Amortization: 8,000 Disposal of prop,plant, and equipment (book value) for cash: 1,000 Deferred income taxes for Year 1 (noncurrent): 400 Undistributed earnings of unconsolidated affiliates: 200 Amortization of discount on bonds payable 50 Amortization of premium on bonds payable 60 Cash proceeds from exercise of stock options 300, Increase in A/R 900, Increase in A/P 1,200, Decrease in inventories 850, Increase in Dividends Payable 300, Decrease in Notes payable to Banks 400



I%26#039;m guessing some of those are in there to be tricky (sorry about the format of the problem, had to make it fit), I know you add back Depreciation, and work with those last accounts, but other than that I%26#039;m lost, any guidance? Thanks!



Help with a cash flow problem? (Indirect method - operating section)?credit cards





too long. i%26#039;m lost too.



me

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