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Worksheet and statement of cash flows

Using given information, prepare a worksheet for statement of cash flows/statement of cash flows.

SATELLITE 2010
Worksheet for a Statement of Cash Flows
For the Year Ended December 31, 2005

Effects of Transactions
Balance sheet effects: Beginning Debit Credit Ending
Balance Changes Changes Balance
Assets
Cash and cash equivalents (x)
Accounts receivable (3)
Plant and equipment (net of
accumulated depreciation) (6) (2)
Totals

Liabilities & Stockholders' Equity
Note payable (short-term) (7)
Accounts payable (4)
Accrued expenses payable (5)
Notes payable (long-term) (6)
Capital stock (no par value) (8)
Retained earnings (1)
Totals

Cash effects: Sources Uses
Operating activities:
Net income (1)
Depreciation (2)
Increase in accounts receivable (3)
Increase in accounts payable (4)
Decrease in accrued expenses
payable (5)
Investing activities:
Cash paid for plant assets (6)
Financing activities:
Short-term borrowing (7)
Issuance of capital stock (8)
Subtotals
Net decrease in cash (x)
Totals

Profit earned in 2004 $115,000

SATELLITE 2010
Comparative Balance Sheets
December 31,
2004 2005

Assets
Cash and cash equivalents $80,000 $37,000
Accounts receivable 100,000 850,000
Plant and equipment (net of accumulated depreciation) 600,000 2,653,000
Totals $780,000 $3,540,000

Liabilities & Stockholders' Equity
Note payable (short-term) $- $1,450,000
Accounts payable 30,000 63,000
Accrued expenses payable 45,000 32,000
Notes payable (long-term) 390,000 740,000
Capital stock (no par value) 200,000 700,000
Retained earnings 115,000 555,000
Totals $780,000 $3,540,000

Additional information for 2005:
Net income $440,000
Depreciation 147,000
Cost of plant assets purchased 2,200,000
Cash paid for plant assets 1,850,000
Long-term note payable issued for plant assets 350,000
Borrowed on line of credit (short-term notes payable) 1,450,000
Capital stock issued (no par value) for cash 500,000

Attachments

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SATELLITE 2010
Worksheet for a Statement of Cash Flows
For the Year Ended December 31, 2005

Effects of Transactions
Balance sheet effects: Beginning Debit Credit Ending
Balance Changes Changes Balance
Assets
Cash and cash equivalents 80,000 (x) 43,000 37,000
Accounts receivable 100,000 (3) 750,000 850,000
Plant and equipment (net of
accumulated depreciation) 600,000 (6) 2,200,000 (2) 147,000 2,653,000
Totals 780,000 3,540,000

Liabilities & Stockholders' Equity
Note payable (short-term) - (7) 1,450,000 1,450,000
Accounts payable 30,000 (4) 33,000 63,000
Accrued expenses payable 45,000 (5) 13,000 32,000
Notes payable (long-term) 390,000 (6) 350,000 740,000
Capital stock (no par value) 200,000 (8) 500,000 700,000
Retained earnings 115,000 (1) 440,000 555,000
Totals 780,000 ...

Solution Summary

The solution explains how to prepare a worksheet and use it to prepare a statement of cash flows for Satellite 2010

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