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Income Statement and Cash Flow Calculations

Income Statement and Cash Flow Calculations

Need to complete problem 2-8 (only complete part one) and problem 2-9 of the exercise.

See attached file for full problem description.

Exercise 2-8 Prepare an income statement for the year ended December 31, 2006 (Assume that 7,500 shares of stock are outstanding.)
Explain what the EPS ratio tells the reader about Beckstrom Corporation

Exercise 2-9 Cash Flow Computations
From the following selected data, compute:
1. Net cash flow provided (used) by operating activities.
2. Net cash flow provided (used) by investing activities.
3. Net cash flow provided (used) by financing activities.
4. Net increase (decrease) in cash during the year.
5. The cash balance at the end of the year.

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Solution Preview

Exercise 2-8 Prepare an income statement for the year ended December 31, 2006 (Assume that 7,500 shares of stock are outstanding.)
Explain what the EPS ratio tells the reader about Beckstrom Corporation

Income Statement
Beckstrom Corporation
For the Year Ended December 31, 2006

Revenue 384,000
Less: Selling and Administrative Expenses
Advertising Expense 15,000
Supplies Expense 46,000
Rent Expense 10,000
Utilities Expense ...

Solution Summary

This solution is comprised of a detailed explanation to prepare an income statement for the year ended December 31, 2006 and compute:
1. Net cash flow provided (used) by operating activities.
2. Net cash flow provided (used) by investing activities.
3. Net cash flow provided (used) by financing activities.
4. Net increase (decrease) in cash during the year.
5. The cash balance at the end of the year.

$2.19