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Chapter 23:
Extra Credit Homework Opportunity (Spring ’13)
Name (Print): ___________________________
1. (1 point)
Use the balance sheet, income statement and additional information for Fish Inc. presented on the next page.
T-accounts
are also provided in a separate Pdf file case you want to use them.

What are the Cash Flows Provided by Operating Activities?
$_____________________

What are the Cash Flows Used by Investing Activities?
$_____________________

What are the Cash Flows Provided by Financing Activities?
$_____________________
2. (1 point)
Use the same balance sheet, income statement and additional information for Fish Inc. to prepare the Operating Activities
section of its Statement of Cash Flows using the direct method and provide the following subtotals:

What is Cash Collected from Customers?
$_____________________

What is Cash Paid to Suppliers?
$_____________________

What is Cash Paid for Operating Expenses?
$_____________________

What is Cash Paid for Interest?
$_____________________
NOTE:
Remember to staple the paper(s) on which you did the work to this sheet.

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The following information is taken from Fish Inc.’s financial statements:
December 31
2013
2012
Cash
$90,000
$
71,000
Accounts receivable
79,000
68,000
Allowance for Doubtful Accounts
(8,000)
(5,000)
Inventory
127,500
131,400
Prepaid expenses
11,000
9,000
Land
99,000
0
Buildings
285,000
220,000
Accumulated depreciation
(80,000)
(86,000)
Patents, net
24,000
31,000
$627,500
$439,400
Accounts payable
$
53,000
$
45,000
Accrued liabilities
36,000
63,000
Interest payable
7,500
6,400
Bonds payable
132,000
0
Common stock
275,000
250,000
Paid in Capital
79,000
46,000
Retained earnings
45,000
29,000
$627,500
$439,400
For the Year Ended December 31, 2013:
Sales
$386,000
Cost of Sales
202,000
Gross Profit
184,000
Operating Expenses
159,000
Income before Gain
25,000
Gain on Sale of Plant Assets
Income before taxes
Income Tax Expense
2,000
27,000
4,250
Net Income
$22,750
Additional Information

Cash dividends were declared and paid.

Bonds were sold at face value.
Three-fourths (75%) were issued to purchase land and one-fourth (25%) were issued
for cash.

A building with a cost of $115,000 which had accumulated depreciation of $97,000 was sold for $20,000 cash.

Another building was purchased for cash.

Common stock was sold for cash, and was sold at above par value.

Operating expenses include depreciation, amortization and bad debt expense.

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