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Balance Sheet Assistance - Kate's Interiors

Balance Sheet Assistance

Financial information related to Kate's Interiors for May and June of 2011 is as follows:

May 31, 2011 June 30, 2011
Notes Payable $200,000 $250,000
Land $500,000 $575,000
Capital Stock $75,000 $90,000
Retained Earnings ? ?
Cash $100,000 $175,000

a. Prepare balance sheets for Kate's Interiors as of May 31 and June 30th.

b. Determine the amount of net income for June, assuming that dividends of $35,000 were paid.

c. Determine the net cash flows from operating activities.

d. Determine the net cash flows from financing activities.

e. Determine the net increase or decrease in cash.

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Solution Summary

Balance Sheet Assistance

Financial information related to Kate's Interiors for May and June of 2011 is as follows:
May 31, 2011 June 30, 2011
Notes Payable $200,000 $250,000
Land $500,000 $575,000
Capital Stock $75,000 $90,000
Retained Earnings ? ?
Cash $100,000 $175,000
a. Prepare balance sheets for Kate's Interiors as of May 31 and June 30th.
b. Determine the amount of net income for June, assuming that dividends of $35,000 were paid.

c. Determine the net cash flows from operating activities.
d. Determine the net cash flows from financing activities.
e. Determine the net increase or decrease in cash.

$2.19