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QUESTIONS 18 THROUGH 20 ARE BASED ON EXHIBIT 5-2...

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QUESTIONS 18 THROUGH 20 ARE BASED ON EXHIBIT 5-2 EXHIBIT 5-2 CHANGES IN THE BALANCE SHEET ACCOUNTS FOR MY TWO SONS COMPANY FROM 6/30/YEAR 6 TO 6/30 YEAR 7 ARE PRESENTED BELOW. INCREASE OF (DECREASE) CASH 40,000 ACCOUNTS RECEIVABLE 100,000 INVENTORY 150,000 LONG-TERM INVESTMENTS 100,000 LONG-LIVED ASSETS (100,000) ACCUMULATED DEPRECIATION (30,000) ACCOUNTS PAYABLE (20,000) MORTGAGE PAYABLE (100,000) BONDS PAYABLE 200,000 COMMON STOCK $1 PAR 150,000 ADDITIONAL PAID IN CAPITAL 50,000 RETAINED EARNINGS 40,000 ADDITIONAL INFORMATION FOR YEAR 7 ? THE BONDS WERE ISSUED FOR CASH AT FACE VALUE ? NET INCOME WAS 240,000 ? DIVIDENDS OF 200,000 WERE DECLARED AND PAID ? COMMON STOCK WAS ISSUED FOR CASH ? A LONG-TERM INVESTMENT WAS SOLD FOR $80,000 WITH NO GAIN OR LOSS ? A NEW LONG TERM INVESTMENT WAS PURCHASED FOR $180,000 ? LONG-LIVED ASSETS THAR COST $300,000 WERE SOLD FOR $100,000 THE BOOK ? VALUE OF THOSE ASSETS WAS $75,000 AT THE TIME OF SALE ? NEW LONG LIVED ASSETS WERE PURCHASED FOR CASH QUESTION #18 REFER TO EXHIBIT 5-2 THE NET CASH FLOW FROM OPERATIONS FOR YEAR 7 IS A------(HINT: ANALYZE THE CHANGE IN ACCUMULATED DEPRECIATION TO DETERMINE THE DEPRECIATION EXPENSE FOR THE YEAR.) A-100,000 INFLOW B-100,000 OUTFLOW C-140,000 INFLOW D-140,000 OUTFLOW QUESTION#19 REFER TO EXHIBIT 5-2 WHAT IS THE NET CASH FLOW INVESTING ACTIVITIES FOR YEAR 7? A-200,000 INFLOW B-200,000 OUTFLOW C-300,000 INFLOW D-300,000 OUTFLOW QUESTION #20 REFER TO EXHIBIT 5-2 WHAT IS THE NET CASH FLOW FROM FINANCING ACTIVITIES FOR YEAR7? A-100,000 INFLOW B-100,000 OUTFLOW C-200,000 INFLOW D-200,000 OUTFLOW,Just reminder these 18 through 20 are based on exhibit table 5-2. Regards,Enter your follow up question here...,Enter your follow up question here...

 

Paper#11064 | Written in 18-Jul-2015

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