Explore BrainMass

Explore BrainMass

    Change in cash due to operating activities

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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.

    © BrainMass Inc. brainmass.com June 4, 2020, 12:35 am ad1c9bdddf
    https://brainmass.com/business/accounting/change-in-cash-due-to-operating-activities-347786

    Solution Preview

    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

    ADVERTISEMENT