Act 325 Module 4 Critical Thinking: Direct and Indirect Cash Flow Models Essay

366 WordsSep 12, 20152 Pages
ACT 325 Module 4 Critical Thinking: Direct and Indirect Cash Flow Models Purchase Here: http://www.homeworkfiles.com/product/act-325-module-4-critical-thinking-direct-and-indirect-cash-flow-models/ Visit www.homeworkfiles.com For More Help Product Description Complete the following exercise. Fill in the Excel spreadsheet provided via the link below to provide your answers to parts a, and b. Then paste the Excel data into a Word document on which you can also write the answer to part c. Label each exercise or problem clearly. Use APA formatting and citation if needed. The Carpet Company’s 2009 and 2010 balance sheets included the following items: December 31 2010 2009 Debits Cash………………………………………………………………………………… $10,500 $ 4,000 Accounts receivable……………………………………………………………….. 8,000 9,000 Merchandise inventory…………………………………………………………… 21,000 18,000 Equipment……………………………………………………………………………. 18,000 15,000 Totals………………………………………………………………………… $57,500 $46,000 Credits Accumulated depreciation, equipment………………………………………. $ 4,000 $ 3,000 Accounts payable…………………………………………………………………… 7,000 5,000 Taxes payable……………………………………………………………………….. 1,000 2,000 Dividends payable………………………………………………………………….. 1,500 0 Common stock, $10 par value…………………………………………………… 27,000 25,000 Contributed capital in excess of par, common stock………………………. 6,000 5,000 Retained earnings………………………………………………………………….. 11,000 6,000 Totals………………………………………………………………………… $57,500 $46,000 CARPET COMPANY Income Statement For the Year Ended December 31, 2010 Sales………………………………………………………………………………… $61,000 Cost of goods sold………………………………………………………………….. $40,000 Wages and other operating expenses………………………………………… 6,300 Income taxes expense……………………………………………………………. 4,200 Depreciation expense…………………………………………………………….. 1,500 52,000 Net income…………………………………………………………………………… $ 9,000 Required:
Open Document