This information is for Campo Corporation for the year ended December 31, 2007. Cash received from lenders

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This information is for Campo Corporation for the year ended December 31, 2007.

Cash received from lenders $20,000 Cash received from customers 65,000 Cash paid for new equipment 35,000 Cash dividends paid 6,000 Cash paid to suppliers 18,000 Cash balance 1/1/07 12,000 Instructions

(a) Prepare the 2007 statement of cash flows for Campo Corporation.

(b) Suppose you are one of Campo's creditors. Referring to the statement of cash flows, evaluate Campo’s ability to repay its creditors.

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Financial Accounting Tools For Business Decision Making

ISBN: 9780471730514

4th Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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