Saturday, December 5, 2009

Accounting helppp plzzz?

1.what effect does the journal entry to book depreciation have on the amount of cash generated by operating activities?



2. the company reported depreciation expenses of 5000 and net income 8000 on its 2006 income stat. during 2006 the company's accounts recievable balance decreased by 2000. what was the amount of cash flow from Operating activities?



Please explain



2005 2006



cash 6000 11000



Acount rec. 2000 4000



prepaid insuranc 5000 4000



inventory 3000 1000



plant etc. 6000 5000



totals 22,000 25000



Account payable 4000 6000



oper. expenses pay 5000 2000



L.T notes pay. 4000 3000



stockholders equity 9000 14000



totals 22000 25000



income statement 2006



revenue 35000



cost of goods sold (20,000)



gross margin 15000



operating expenses (10,000)



net income 5000



Accounting helppp plzzz?performing show



do your own homework. i'm in accounting and that ain't even hard

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