WEEK TWO

1. Increase in accounts receivable

$25

	Increase in inventories	$32

Operating income	$75
Interest expense	$23
Increase in accounts payable	$26
Dividends	$15
Increase in common stock	$22
Increase in net fixed assets	$23
Depreciation expense	$13
Income taxes	$18
Beginning cash	$18

(Working with a statement of cash flows); prepare a statement of cash flows.

Complete operating activities part of the statement of cash flows. (Round to the nearest dollar.

NOTE: Input cash inflows as positive values and cash outflows as negative values.)

Statement of Cash Flows
Cash Flows from Operating Activities
Net income	$
Adjustments
Increase in accounts payable
Depreciation
Increase in inventory
Increase in accounts receivable
Net cash provided by operating activities			$

2. (Preparing an income statement)

Prepare an income statement and a common-sized income statement from the following information.

Sales	$525,749
Cost of goods sold		199,464

General and administrative expense	60,567

Depreciation expense	8,493

Interest expense	11,923

Income taxes	98,121

Complete the income statement below.(Round to the nearest dollar).

NOTE:(You may input expense accounts as negative values.)

Income Statement
Sales			$
Cost of goods sold
Gross profits			$
General and administrative expense	$
Depreciation expense
Total operating expenses			$
Operating income (EBIT)			$
Interest expense
Earnings before taxes			$
Income taxes
Net income			$

3. Cash

$30,398

Accounts receivable		63,236

Accounts payable	52,058

Short-term notes payable	10,430

Inventories	65,383

Gross fixed assets	1,060,742

Accumulated depreciation	85,109

Long-term debt	210,320

Common stock	480,258

Other assets	25,034
Retained earnings	?

(Preparing a balance sheet) Prepare a balance sheet and a common-sized balance sheet.

Complete the part of the balance sheet below. (Round to the nearest dollar. NOTE: Input the Accumulated depreciation account as a negative value.)

Balance Sheet
ASSETS
Cash	$
Accounts receivable
Inventories
Total current assets	$
Accumulated depreciation	$
Gross fixed assets
Net fixed assets	$
Other assets
Total assets	$

PLEASE ANSWER EACH QUESTION CORRECTLY; AND FULLY!!