1. Explain why depreciation expense should be added back when compiling the statement of cash flow. If there is an amortization expense account, how would you treat it?
2. If beverage inventory increases from $150,000 on December 31, 2008, to $165,000 on December 31, 2009, will this constitute a cash inflow or cash outflow for W.S. Sports Bar in its cash flow from operations?
3. Gabis Grill purchased a new ice machine in March. In Gabis cash flow statement for that month, is this a cash in flow or out flow, and in which section of the statement of cash flow will the purchase appear?
4. Consider the following aging table. What will be Christian Caterings total estimated bad debts? Christian Catering Number of Days Customer Current 130 3160 6190 Over 90 M. Saryee 100 100 B. Davis 350 350 G. Francis 2,500 2,500 C. Duncan 375 375 J. Janik 300 300 B. Arredondo 470 470 Others 20,000 10,000 7,000 1,000 500 1,500 Total $24,095 12,600 7,000 1,350 875 2,270 Estimated percentage uncollectible 1.0% 1.5% 10% 20% 50%

4. Explain why depreciation expense should be added back when compiling the statement of cash flow. If there is an amortization expense account, how would you treat it? 5. If beverage inventory increases from $150,000 on December 31, 2008, to $165,000 on December 31, 2009, will this constitute a cash inflow or cash outflow for W.S. Sports Bar in its cash flow from operations? 6. Gabi's Grill purchased a new ice machine in March. In Gabi's cash flow statement for that month, is this a cash in flow or out flow, and in which section of the statement of cash flow will the purchase appear? 7. Consider the following aging table. What will be Christian Catering's total estimated bad debts? 47 48 Christian Catering Number of Days 1-30 31-60 61-90 Over 90 Current 100 350 2,500 375 Customer M. Saryee B. Davis G. Francis C. Duncan J. Janik B. Arredondo Others Total Estimated percentage uncollectible 100 350 2,500 375 300 470 20,000 $24,095 300 470 1,500 2,270 10,000 12,600 7,000 7,000 1,000 1,350 500 875 1.0% 1.5% 10% 20% 50% 4. Explain why depreciation expense should be added back when compiling the statement of cash flow. If there is an amortization expense account, how would you treat it? 5. If beverage inventory increases from $150,000 on December 31, 2008, to $165,000 on December 31, 2009, will this constitute a cash inflow or cash outflow for W.S. Sports Bar in its cash flow from operations? 6. Gabi's Grill purchased a new ice machine in March. In Gabi's cash flow statement for that month, is this a cash in flow or out flow, and in which section of the statement of cash flow will the purchase appear? 7. Consider the following aging table. What will be Christian Catering's total estimated bad debts? 47 48 Christian Catering Number of Days 1-30 31-60 61-90 Over 90 Current 100 350 2,500 375 Customer M. Saryee B. Davis G. Francis C. Duncan J. Janik B. Arredondo Others Total Estimated percentage uncollectible 100 350 2,500 375 300 470 20,000 $24,095 300 470 1,500 2,270 10,000 12,600 7,000 7,000 1,000 1,350 500 875 1.0% 1.5% 10% 20% 50%