Table 3-3
Marlett Company
Financial Information
December 2009 December 2010
Net Income $2,000 $4,000
Accounts receivable 750 1,250
Accumulated depreciation 1,000 1,400
Common stock 4,500 5500
Paid-in capital 7,500 8500
Retained earnings 1,500 3,500
Accounts payable 750 950
Based on the information in , prepare a statement of cash flows for 2010. Assume that there were no
changes in any other asset or liability accounts, and that the ending cash balance for 2009 was $100.
Marlett Company
Statement of Cash Flows
For the Year Ended Dec. 31, 2008
Operating Activities
Net Income $4,000
Depreciation Expense 400
Increase in Accounts Receivable (500 )
Increase in Accounts Payable 200
Cash Flow from Operations $4,100
Investing Activities
Cash Flow from Investing Activities $0
Financing Activities
Increase in Common Stock $1,000
Increase in Paid-in-Capital 1,000
Dividends Paid (2,000 )
Cash Flow from Financing Activities $0
Change in Cash $4,100
Beginning Cash Balance 100
Ending Cash Balance $4,200
You might also like to view...
Cost-benefit is an accounting convention or rule of thumb that supports long-run decision making
Indicate whether the statement is true or false
Which of the following is true about a growth stock?
A. It pays a fixed amount of dividends every year. B. It has voting rights and generally pays a fixed amount of interest each year until maturity. C. It pays large and relatively constant dividends each year. D. It pays cumulative dividends at the time of maturity. E. It generally pays little or no dividends because the firm retains most of its earnings to fund developmental opportunities.
An operating system is a program that controls a computer's resources.
Answer the following statement true (T) or false (F)
Remedies of the agent for breach of duty by the principal arise out of contract and tort law
a. True b. False Indicate whether the statement is true or false