AR Inventory

96,000 beg end 138,000 168,000 beg end 206,000

536,000 SOA Collected 494,000 434,000 Purchase COS 396,000
write of
SRA
SD

Accounts Payable Salaries Payable

90,000 end beg 68,000 16,000 end beg 20,000
412,000 payment POA 434,000 22,000 payment expense 18,000
Sales 536,000 Operating Activities
COGS 396,000 Net Income 44,000
Gross Profit 140,000 Depreciation 22,000
Depreciation Exp 22,000 66,000
Salaries Exp 18,000 Increase in Accounts Receivable -42,000
Other Exp 56,000 Increase in Inventory -38,000
Net Income 44,000 Increase in Accounts Payable 22,000
Decrease in Salaries Expense -4,000
Net Cash Flow provided by Operating Activities 4,000

Investing Activities
Payment of other Expenses -56,000
Proceeds from Accounts Receivable 494,000
Payment of Accounts Payable -412,000
Payment of Salaries Payable -22,000
4,000
AR Inventory
62,400 beg end 70,600 158,600 beg end 148,200
616,600 SOA Collected 608,400 479,600 POA COS 490,000
write of
SRA
SD

Accounts Payable Short-term Notes Payable (inven

39,000 end beg 51,000 41,600 end beg 40,000
12,000 payment Expense Account 478,000 payment expense 479,600
Sales 616,600 Operating Activities
COGS 490,000 Net Income
Gross Profit 126,600 Depreciation Expense
Less: Depreciation Exp 18,200 Amortixation Expense
Less: Amortixation 2,600 Loss on sale of Building
Less: Other Exp 56,000 Gain on Sale of Investments
Less: Loss on sale of Building 3,000
Add: Gain on Sale of Investment 13,000 Increase in
Net Income 59,800 Decrease in
Decrease in
Other expense 56,000 Increase in
Add: Net Cash Flow provided by Operating Activities
other expense Cash basis 56,000
Investing Activities
 Payment of Other Expense -56,000
59,800 Proceeds from Accounts Receivable 608,400
18,200 Payment of Accounts Payable -12,000
2,600 Payment of Short-term -478,000
3,000 62,400
-13,000 0
70,600
Accounts Receivable -8,200
Inventory 10,400
Accounts Payable -12,000
Short-term Notes Payable ( 1,600
rovided by Operating Activities 62,400
Interest Expense 900,000 Interest Expense 900,000
Cash 900,000 Cash 900,000

Interest Expense 100,000 1,000,000 Premium on BP 100,000 800,000

discount on BP 100,000 Interest Expense 100,000
AR Inventory
92,000 beg end 80,000 43,000 beg end 65,000
SOA Collected Purchase COS
write of
SRA
SD

Liabilities
95,000 end beg 75,000
-20,000 payment POA 0
Net Income 50,000
Depreciation Expense 25,000
75,000
Decrease in Accounts Receivable 12,000
Increase in Inventory (22,000)
Increase in Accounts Payables 20,000
Net Cash Flow provided by Operating Activities 85,000
AR Inventory
150,750 beg end 170,100 195,000 beg end 238,500
SOA Collected Purchase COS
write of
SRA
SD

Accounts Payable Accu Dep

103,500 end beg 126,000 234,000 end beg 198,000
payment POA 0 expense 36,000

Other Current Liabilities Prepaid Insurance

45,000 end beg 27,000 12,000 beg end 10,800
payment expense 0 Purchase COS

a
Net Income 319,500
Depreciation Expense 36,000
355,500
Increase in Accounts Receivable (19,350)
Increase in Inventory (43,500)
Decrease in Prepaid Insurance 1,200
Decrease in Accounts Payable (22,500)
Increase in Other Current Liabilities 18,000
Net Cash Flow provided by Operating Activities 289,350
AR Inventory
260,000 beg end 218,000 95,000 beg end 85,000
490,000 SOA Collected 532,000 340,000 Purchase COS 350,000
write of
SRA
SD

Accounts Payable Accu Dep

105,000 end beg 135,000 end beg
370,000 payment POA 340,000 expense

Other Current Liabilities Prepaid Insurance

end beg beg end
payment expense 0 Purchase COS

a
Net Income 15,000 Sale 490,000
Depreciation Expense 30,000 COGS 350,000
45,000 GP 140,000
Increase in Accounts Receivable 42,000 Depreciati 30,000
Increase in Inventory 10,000 110,000
Decrease in Prepaid Insurance - Other Exp 95,000
Decrease in Accounts Payable (30,000) Net Incom 15,000
Increase in Other Current Liabilities -
Net Cash Flow provided by Operating Activities 67,000

Proceeds from Accounts Receivable 532,000

Payment to Accounts Payable (370,000)
Payment to Other Expense (95,000)
67,000
Land, Building, and Equipment Inventory
200,000 beg end 325,000 beg
125,000 Acquired Retire/Sold Purchase

Common Stock Accu Dep

300,000 end beg 200,000 75,000 end beg 50,000
issued 100,000 expense 25,000

Additional Paid in Capital Retained Earnings

40,000 end beg 0 30,000 end beg 20,000
issued exce 40,000 40,000 declared Net income

a
Payment to Acquired Land, Building (125,000)
Net Cash Flow used by Investing Activities (125,000)

Proceeds from Issued Common Stock 140,000

Payment to Dividend Declared (40,000)
Net Cash Flow provided by Financing Activities 100,000
 end beg
Cash and cash equivalent 250,000 220,000 30,000
Accounts Receivable 327,600 356,000 -28,400
Inventories 822,000 780,000 42,000
Investment in Bonds (amortixed cost) 0 200,000 -200,000
Equipment 2,400,000 2,040,000 360,000
Accumulated Depreciation -700,000 -760,000 60,000
3,099,600 2,836,000
Accounts Payable 359,000 281,000 78,000
Bonds Payable, due 2005 0 400,000 -400,000
Common stock, P20 par 1,800,000 1,600,000 200,000
Paid Capital in Excess of par 280,000 200,000 80,000
Retained Earnings 660,600 355,000 305,600
3,099,600 2,836,000

Investment in Bonds (amortixed cost)

Selling Price 300,000
CV 200,000
Gain on sale 100,000

issued share (CS) 10,000

market value per share 28
proceeds 280,000

Bonds Payable
Retirement Price 400,000
CV 400,000
0
Equipment sold as scrap
Selling Price 0
CV: Cost 200,000
Accum Depreciation 200,000 0
Gain on sale 0
 Covey Corpostion
Statement of Cash Flow
For the Year-Ended December 31, 2002

Operating Activities
Net Income 545,600
Depreciation Expense 140,000
Gain on Sales -100,000
585,600
Decrease in Accounts Receivable 28,400
Increase in Inventories -42,000
Increase in Accounts Payable 78,000
Net Cash provided by Operating Activties 650,000

Proceeds from Equipment sold 0

Proceeds from Investment in Bonds 300,000
Payment to Equipment Acquired -560,000
Net Cash used by Investing Activities -260,000

Payment to Bonds Payable -400,000

Proceeds from Common stock issued 280,000
Payment to dividend declared -240,000
Net Cash used by Financing Activities -360,000
Increase in Cash balanace 30,000
Cash beginning 220,000
Cash ending 250,000
AR Inventory
356,000 beg end 327,600 780,000 beg
SOA Collected Purchase
write of
SRA
SD

Investment in Bonds
200,000 beg end 0
0 acquired sold 200,000

Bonds Payable Prepaid Insurance

0 end beg 400,000 beg
400,000 payment issued Purchase

Equipment
2,040,000 beg end 2,400,000 700,000 end
560,000 Acquired Sold 200,000 200,000 sold

Common stock, P20 par

1,800,000 end beg 1,600,000 280,000 end
issued 200,000

Retianed Earnings
660,600 end beg 355,000
240,000 declared net income 545,600
 Net Income
end 822,000 Depreciation Expense
COS
Increase in
Increase in
Decrease in
Decrease in
Increase in
Net Cash Flow provided by Operating Activities

Proceeds from
Payment to
Payment to
end
COS

Accu Dep
beg 760,000
expense 140,000

Paid Capital in Excess of par

beg 200,000
issued 80,000
 15,000 Sale 490,000
30,000 COGS 350,000
45,000 GP 140,000
Accounts Receivable 28,400 Depreciation Expense 30,000
Inventory (42,000) 110,000
Prepaid Insurance - Other Expense 95,000
Accounts Payable 200,000 Net Income 15,000
Other Current Liabilities -
231,400

Accounts Receivable -
Accounts Payable -
Other Expense (95,000)
(95,000)