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Change in cash due to operating activities

Q. What is the change in cash due to operating activities?

Evergreen Inc.
Comparative balance sheets
December 31, 2012

Assets12/31/2012 12/31/2011
Cash $357,000 $312,000
Accounts receivable $80,000 $83,000
Inventory $213,000 $199,000
Prepaid expenses $25,000 $21,000
Fixed assets $463,000 $419,000
Accumulated depreciation $(213,000) $(201,000)

Total assets $925,000 $833,000

Liabilities & stockholders' equity

Accounts payable $112,000 $120,000
Salaries payable $30,000 $28,000
Bonds payable $50,000 $30,000
Common stock $600,000 $570,000
Retained earnings $133,000 $85,000

Total liabilities & $925,000 $833,000

Stockholders' equity: the change in retained earnings was due to net income of $55,000 and payment of $7,000 of dividends.

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Q. What is the change in cash due to operating activities?

Evergreen Inc.
Comparative balance sheets
December 31, 2012

Assets 12/31/2012 12/31/2011
cash 357,000 $312,000
accounts receivable $80,000 $83,000
inventory $213,000 $199,000
prepaid expenses $25,000 $21,000
fixed assets $463,000 $419,000
accumulated depreciation $(213,000) $(201,000)

Total assets ...

Solution Summary

The solution explains the calculation of change in cash due to operating activities

$2.19