Decision Making
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Statement of Cash Flows Problem
Christian M. Gonzalez
University of Phoenix
ACC539: Accounting for Managerial Decision Making
Group# GA04MBA07
Chee-Sum Tan, CPA, CFA, FCCA, MBA
March 10, 2005
P9.28. The strategy is to enter the amount of the change for each asset, liability and owners' equity item between the two dates. Each of these changes will be used in the Statement of Cash Flows. (Note: Because the retained earnings section of the balance sheet is, in and of itself, an analysis of the change in the retained earnings account for the month, total net income and total dividends for the month of February are shown as changes).
MILLCO, INC.
Balance Sheets
January 31 and February 28, 2004
Assets: Feb. 28 Jan. 31 Change
Cash $ 42,000 $ 37,000 +5,000
Accounts receivable 64,000 53,000 +11,000
Merchandise inventory 81,000 94,000 -13,000
Total current assets $187,000 $184,000
Plant and Equipment:
Production equipment $166,000 $152,000 +14,000
Less: Accumulated depreciation (24,000) (21,000) +(3,000)
Total assets $329,000 $315,000
Liabilities:
Short-term debt $ 44,000 $ 44,000 0
Accounts payable 37,000 41,000 - 4,000
Other accrued liabilities 21,000 24,000 - 3,000
Total current liabilities $102,000 $109,000
Long-term debt 33,000 46,000...
Christian M. Gonzalez
University of Phoenix
ACC539: Accounting for Managerial Decision Making
Group# GA04MBA07
Chee-Sum Tan, CPA, CFA, FCCA, MBA
March 10, 2005
P9.28. The strategy is to enter the amount of the change for each asset, liability and owners' equity item between the two dates. Each of these changes will be used in the Statement of Cash Flows. (Note: Because the retained earnings section of the balance sheet is, in and of itself, an analysis of the change in the retained earnings account for the month, total net income and total dividends for the month of February are shown as changes).
MILLCO, INC.
Balance Sheets
January 31 and February 28, 2004
Assets: Feb. 28 Jan. 31 Change
Cash $ 42,000 $ 37,000 +5,000
Accounts receivable 64,000 53,000 +11,000
Merchandise inventory 81,000 94,000 -13,000
Total current assets $187,000 $184,000
Plant and Equipment:
Production equipment $166,000 $152,000 +14,000
Less: Accumulated depreciation (24,000) (21,000) +(3,000)
Total assets $329,000 $315,000
Liabilities:
Short-term debt $ 44,000 $ 44,000 0
Accounts payable 37,000 41,000 - 4,000
Other accrued liabilities 21,000 24,000 - 3,000
Total current liabilities $102,000 $109,000
Long-term debt 33,000 46,000...