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On its
balance sheet it reports beginning and ending balances of Accounts
Receivable in the amounts of $ 68,000 and $ 60,000 respectively. What is
the cash collected from sales?
Sales 810,000
COGS (460,000)
Depreciation Expense (30,000)
Administrative Expenses (175,500)
Tax Expense (69,500)
Company A wishes to determine its net cash flow from operations for 2009. Partial
balance sheets for 2008 and 2009 indicate the following:
2008 2009
Example: A company’s beginning balance in its Land account was $ 10,000; its ending
balance was $ 17,000. During the period, it sold land with a cost of $ 7,000 for $ 11,000.
How much cash did the company spend on the purchase of land? How do we treat the
gain on the sale of land?
Cash flows from land:
Example:
Machinery was purchased for $ 40,000. A piece of machinery was sold for a gain of $
1,000. How much was cash received from sale of the machine?
Example:
Investing:
Financing: