Reference no: EM132536886

The Bee Company shows the following account amounts:

                                          2009                    2010

Sales                                  $8,743,000         $8,337,000

Accounts Receivable 12/31        511,000            641,000

Required:

Question 1: Provide an example how much cash was generate from sales during 2010.

Question 2: Show examples what effects the following transactions would have on cash and how they would be shows in a cash flow statement:

a. A $2,000,000 piece of equipment is purchased with the proceeds of a new 12-month note.

b. Mortgage bonds are returned with $790,000 cash and the proceeds of an issue of $150,000 shares of common stock.

c. $3,000,000 of inventory is purchased on account.

d. A Dividend of $.25 per share is declared on the $750,000 outstanding shares.

e. a piece of machinery is sold for $1,500,000 cash. When Originally purchased, it costs Anwat $5,000,000 and currently has $2,500,000 of accumulated depreciation.