)

	Sunlight Co.	Photo Co.	Synthesis Co.
Beginning capital assets, net of depreciation	$850,500	$712,200	$488,300
Ending capital assets, net of depreciation	960,000	706,800	284,400
Depreciation expense	65,200	49,300	(c)
Gain (loss) on sale of capital assets	5,500	(b)	(16,800)
Costs of capital assets acquired	230,600	128,000	55,600
Proceeds from sale of capital assets	(a)	72,500	184,900

Calculate with all the steps shown of the missing values.

2)

Net Loss ($36,000)

Depreciation $28,000

Increase in accounts receivable $35,000

Decrease in inventories $14,500

Increase in accounts payable $34,000

Decrease in income taxes payable $6,700

Decrease in wages payable $1,800

Proceeds on Sale of Equipment $380,000

Repayment of bonds $250,000

Issuance of Common shares $100,000

Proceeds on sale of land $150,000

Gain on sale of land $20,000

Payment of dividends $10,000

Prepare the cash flow from operations under ASPE!

3) Which ratios are important for shareholders for the investment decision making? Which ratios would make the lenders evaluate the borrowing ability of the firm?