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Woods Interiors uses the cash basis of accounting. Financial information related to Woods Interiors for September and October of 2004 is as follows:
September 30, 2004
October 31, 2004
Notes payable
$10,000
$15,000
Land
17,000
25,000
Capital stock
6,000
9,000
Retained earnings
?
Cash
18,000
27,000
a. Prepare balance sheets for Woods Interiors as of September 30 and as of October 31, 2004.
b. Determine the amount of net income for October, assuming that dividends of $2,000 were paid.
c. Determine the net cash flows from operating activities.
d. Determine the net cash flows from investing activities.
e. Determine the net cash flows for financing activities.
f. Determine the net increase or decrease in cash.
Financial Statement Analysis and Preparation
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