Financial statements of Ansbro Corporation follow: $585 $577 $585 $577 516 219 5
ID: 2372964 • Letter: F
Question
Financial statements of Ansbro Corporation follow:
$585
$577
$585
$577
516
219
54
$126
(SHOW WORK TO GET RATED) please
Balance Beginning
Balance Assets: Cash and cash equivalents $90 $67 Accounts receivable 139 110 Inventory 80 57 Property, plant and equipment 698 660 Less accumulated depreciation 422
317
Total assets
$585
$577
Liabilities and stockholder's equity: Accounts payable $87 $118 Bonds payable 254 260 Common stock 133 130 Retained earnings 11169
Total liabilities and stockholder's equity
$585
$577
Explanation / Answer
C. $148
Net Income
126
Depriciation
105
231
Change in Operating accounts
Increase in Recievables
-29
Increase in Inventory
-23
Decrease in Payables
-31
-83
Cash Flow from operations
148
Increase in assets has to be subtracted and Increase in Liabilities has to be added.
Plants and equipments goes under investing cash flow
Bonds and common stock goes under financing cash flow.
Simple method is to:
1. Start with NET INCOME.
2. 2. Add Depriciation
3. Subtract gains from sale of land or add losses.
4. Now for operating accounts: subtract increase in assests and add increase in liabilitities.
Net Income
126
Depriciation
105
231
Change in Operating accounts
Increase in Recievables
-29
Increase in Inventory
-23
Decrease in Payables
-31
-83
Cash Flow from operations
148
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