On June 5, Belen Corporation reacquired 3,300 shares of it common stock at $45 p
ID: 2382396 • Letter: O
Question
On June 5, Belen Corporation reacquired 3,300 shares of it common stock at $45 per share. On July 15, Belen sold 2,000 of the reacquired shares at $48 per share. On August 30, Belen sold the remaining shares at $42 per share.Journalize the transactions of June 5, July 15, and August 30.
?22.?Fortune Corporation’s comparative balance sheet for current assets and liabilities was as follows:
Dec. 31, 2009
Dec. 31, 2008
Accounts receivable
7,500
5,200
Inventory
11,500
16,000
Accounts payable
4,300
5,200
Dividends payable
4,000
3,000
Adjust net income of $65,000 for changes in operating assets and liabilities to arrive at cash flows from operating activities.
Explanation / Answer
Calculation of cash flows from operating activities
Particulars amount
Net income $65,000
Adjustments to reconcile net cash flow from operating activities:
Add:
Decrease in inventory $4,500
Less:
Increase in accounts receivables $2,300
Decrease in accounts payable $900
Net cash flows from operating activities $66,300
b)
Comparative balance sheet:
Comparative balance sheet means first consider any increases or any decreases in current assets and current liabilities accounts between two balance sheet dates.
Comparative Balance Sheets as on 31st Dec 2008 & 31st Dec 2009
31st Dec 2008 31st Dec 2009 incr/decse % of incrse / (decse)
Current Assets:
Accounts Receivables $5200 $7,500 -$2,300 -44.23%
Inventory $16000 $11,500 $4,500 28.12%
Total Current Assets $21,200 $19,000 $2,200 10.37%
Liabilities:
Current Liabilities:
Accounts Payable $5,200 $4,300 $900 17.30%
Dividends Payable $3000 $4000 -$1000 33.3%
Total Current Liabilities $8,200 $8,300 -$100 -1.21%
working notes:
caluculation of % increase and decrease;
for ex:
accounts receivables = 5200 - 100 %
2300 - ?
= 2300/5200*100
= 44.23%
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