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The following information and financial statements excerpts pertain to Le Chateau

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The following information and financial statements excerpts pertain to Le Chateau Meaux Inc.;a. All short term investments (securities available for sale as per SFAS 115, 1993)) were purchased on 12/31/04 and sold during 2005.;b. The company entered a lease agreement on 12/31/05.;c. Fixed assets with a net book value of $15 were sold during the year.;d. The company repaid the current portion of long-term debt during the year.;e. Dividend was declared and partially paid.;Required: Prepare a Statement of Cash Flows in full compliance with SFAS 95 (1987);1. Prepare the statement of cash flow for the year 2005 using the direct method. (Operating section, investing and financing sections);2. Reconcile net income and operating cash flow for the year 2005. (You only need to do the operating section);See attached file for full problem description.;The following information and financial statements excerpts pertain to;Le Chateau Meaux Inc.;a. All short term investments (securities available for sale as per SFAS;115, 1993)) were purchased on 12/31/04 and sold during 2005.;b. The company entered a lease agreement on 12/31/05.;c. Fixed assets with a net book value of $15 were sold during the year.;d. The company repaid the current portion of long-term debt during the;year.;e. Dividend was declared and partially paid.;Required: Prepare a Statement of Cash Flows in full compliance with;SFAS 95 (1987);1. Prepare the statement of cash flow for the year 2005 using the direct;method. (Operating section, investing and financing sections);2. Reconcile net income and operating cash flow for the year 2005. (You;only need to do the operating section);Le Chateau Meaux;Income Statement;For the Year Ended 12/31/2005;Revenues, net;426;COGS;310;Gross margin;116;General expenses 30;Wages expenses 42;Depreciation expenses 24;Interest expenses 11;Loss on sale of fixed assets 3 110;Operating Income;6;Gain on sale of ???available for sale??? securities 12;Income before Taxes 18;Tax expenses 8;Net income;10;Le Chateau Meaux;Comparative Balance Sheets;12/31/2004 12/31/2005;Assets;Cash 54 45;Short term investments 95 0;Accounts receivable 45 85;Inventory 52 75;Prepaid general expenses 11 15;Total Current Assets 257 220;Fixed assets under capital lease, net 0 50;Fixed assets, net 165 228;Total Assets 422 498;Liabilities;Accounts payable 38 48;Wages payable 12 6;Tax payable 3 5;Dividend payable 0 4;Current portion of long term debt 10 12;Total Current Liabilities 63 75;Obligations under capital leases 0 50;Long term debt 183 180;Total Liabilities 246 305;Stockholders Equity;Common stock 150 163;Retained earnings 26 30;Total Stockholders Equity 176 193;Total Stockholders and Liabilities 422 498

 

Paper#26464 | Written in 18-Jul-2015

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