Chapter 4 statement of cash flow1.The net income of the ZY Company for 1999 was $260000. Additional data available relative to activities for the year are given below:A. Depreciation expenses for the year, $90000;B. gains on sale of machinery used in operations was $2400;C. Accounts receivable increased by $2000;D. Accounts payable increased by $8400;E. Patent amortization for the year was $14800;RequiredPrepare the cash flows from operating activities section of a statement of cash flows un der the indirect method.Cash flows from operating activities:Net income …………………………………………………………… $260000Adjustment for non cash revenue and expenses:expenses not requiring cashAdd depreciation 90000Patent amortization 14800cash change not from operationsdeduct gains on sale of machinery 2400Current liabilities changes:Deduct Accounts receivable increase 2000Add Accounts payable increase 8400Cash flows from operating activities $3688001.Purchased material ,$200, and equipment, $3100，paid cash.2.Paid cash to acquire land, $ 270003.Performed service for a customer and received cash $160004.Issued common stock and received $39000 cash5.Prepaid insurance $1200 for next 12months6.Paid cash for employee salary $ 24007.Acquire a long-term loan from bank $400008.Paid $5000 for cash dividend10.Gains on sale of equipment of $3000Calculate cash flow from operations, financing and investing.12200,-27100,74000Chapter 8 accounts receivable1.T/FAn account receivable that has been determined to be uncollectible is still an asset.(F) We should debit bad debts expense and credit allowance for doubtful accounts for write off bad debts.(F)Allowance for doubtful accounts is contra-asset account that offsets account receivable.(T)Gross accounts receivable appears on the balance sheet.(F)When we write off a worthless receivables, the net accounts receivable is less than before.(F)2.When we use the allowance method to record bad debts,there are three methods to estimate the amount of bad debtsPercentage of total accounts receivable outstanding(应收账款余额百分比法)Aging method（账龄分析法）Percentage-of-sales method(销货百分比法)（一）余额百分比法（二）这是按照期末应收账款余额的一定百分比估计坏账损失的方法。
坏账百分比由企业根据以往的资料或经验自行确定期末应收账款的余额×坏账百分比=期末坏账准备账户余额，当期应计提的坏账准备金额=期末坏账准备余额加减调整坏账准备账户已有金额例：企业2006年末应收账款余额为80000元，估计坏账准备的提取比例为应收账款余额的10%，坏账准备期初无余额，本期也没有坏账的注销。
06年应计提的坏账准备？80000*10%=8000,本期应计提的坏账准备=8000-0=80002007年发生坏账4 000元，该年末应收账款余额为98000元，07年应计提的坏账准备?980098000*10%=9800 期末坏账准备的余额。
本期应计提的坏账准备=9800-8000+4000=5800（二）账龄分析法将企业的应收账款按账龄长短进行分组，分别确定不同的计提百分比估算坏账损失。
应收账款账龄应收账款余额坏账百分比估计的坏账损失的金额未逾期1000 1% 10逾期6个月以内3000 2% 60逾期6个月以上5000 3% 150期末坏账准备的余额为220本期应计提坏账准备的金额=期末余额+—调整前坏账准备的已有金额（三）销货百分比法这是根据企业本期赊销总额的百分比估计坏账损失的方法本期赊销总额*坏账百分比=本期应计提的坏账准备前两种方法计算出的是坏账准备的期末余额，结合坏账准备已有的金额，确定本期应计提的金额。
销货百分比法直接计算出本期应计提的坏账准备，无需考虑坏账准备已有的金额。
例：丙公司2006年赊销金额为20 000元，估计坏账损失率为1%，2006年初坏账准备账户余额为贷方200元。
计算2006年应计提的坏账准备和2006年末坏账准备科目余额。
本期应计提的坏账准备=20000*1%=200坏账准备期末余额=200+200=400Compute estimated bad debts expense and make journal entry.Beginning balance of accounts receivables is $50000. Allowances for doubtful accounts has credit amounts $500 at the beginning of 2006.2006.3.1 companies sold goods on account for $700002006.5.1 Company received the previous year's accounts receivable $300002006.5.2 company wrote off $200 bad debts2006.12.31 company used percentage of total accounts receivable outstanding method estimate uncollectible . Percent estimated uncollectible was 1%2006.12.31 company used percent-of-sales method to record bad debts .Percent estimated uncollectible of sale was 1%Chapter 9 inventoriesDefinition and classification of inventoryPerpetual inventory system and periodic inventory systemFIFO method,LIFO method and average methodLower-of-cost-or-marketFinancial statistics of inventory1.永续盘存制与实地盘存制(定期盘存制)的比较(1)存货在账簿中登记的方法不同。
永续盘存制对各项存货的增加数和减少数都要在帐簿中进行连续的登记，并随时在帐簿中结算出各项财产物资的账面结存数；实地盘存制只对存货的增加数记账，而不登记减少数，月末根据实地盘点的结存数，计算出本期减少数，并记入有关账簿。
(2)两者财产清查的目的不同。
永续盘存制下财产清查的目的是为了与账簿记录进行核对实地盘存制下财产清查的目的是计算期末财产的结存数。
（1）Perpetual versus periodic inventory systemPerpetual inventory system continually records additions or deletions of inventory. Cost of goods sold is recorded at the time of the sale rather than waiting until the end of the period. Perpetualinventory system updated values for inventory that company can know what items are sold and what remain in inventory at any time.Physical inventory counts are usually taken at least once a year in order to check on the validity of the book records. This inventory count enables a company to see the amount of inventory shrinkage from theft and other factors.（2）Periodic inventory system does not require a continual record of inventory changes. It only records additions of inventory. Costs of materials used and costs of goods sold cannot be calculated until ending inventories, determined by physical count. Cost of goods sold equals beginning inventory plus purchases minus ending inventory.Physical inventory counts are taken in order to compute ending inventory value.2.FIFO,LIFO and average methodThe selling price of merchandise inventory is $25.Compute cost of goods sold under FIFO,LIFO and average method.Make journal entry on May 10, May 30Make entry on May 10:Cash 22500Sales revenue 22500Cost of goods sold 13500 14000Merchandise inventory 13500 14000May 30:Cash 27500Sales revenue 27500100*15+500*16+500*17=18000Cost of goods sold 18000Merchandise inventory 18000800*17+300*15=18100Cost of goods sold 18100Merchandise inventory 18100Average cost per unit=1000*15+500*16+800*17/2300=15.9115.91*2000=31820Cost of goods sold 318203.Sales revenue :50000Cost of goods sold: 40000Beginning inventory : 8000Ending inventory: 12000Calculate following financial statistics1.Gross profit2.gross profit percentage3.Inventory turnover4.Days inventory held1.Gross profit=100002.gross profit percentage=10000/50000=20%3.Inventory turnover=40000/10000=44.Days inventory held=365/4=91.25。