E11-6

Debit Credit
A Apr,1 Cash 99,000
Common Stock 36,000
Paid in capital in exce 63,000

15-Jun Cash Divid 103,500

Dividend payable 103500

10-Jul Dividend p 103500

Cash 103500

1-Dec Cash 48000

Common stock 16000
Paid in capital in exce 32000

15-Dec Cash divid 116,800

Dividend payable 116,800

B Dividend of 220300 will deducted net income in Retain earning statement

Dividend payable of 116800 is stated in Balance sheet as liabilities
E11-7
Before Action After Stock Dividen
Stock Holder's Equity
Common Stock, $8 par 648,000 680,400
Paid in capital in excess of par value 36,450
Total Paid-in capital 648,000 716,850
Retained Earning 400,000 331,150
Total Stock Holder Equity 1,048,000 1,048,000

Outstanding shares 81,000 85,050

E12-6
Ramos Corporation
Statement of Cashflow
For Dec 31, 2014

Cash flow from Operating Income

Net Income 284100
Adjustment to reconcile net income to net cash
provided by operating activities :
Depreciation expense 162000
Income tax increase 4700
Account Receivable increase -8200
Account Payable decrease -3700
Increase in inventory -11000 143800
Net cash provided by operating activities 427900

Cash flow from Investing activities

Sale of land at book value 35000
Purchase of building -289000
Net cash provided by investing activities -254000

Cash flow from Financing activities

Issuing bond 200000
Purchase treasury stock -26000
Dividend paid -12000
Net cash provided by financingactivities 162000

Net Increase in cash 335900

Cash at beginning period 45000
Cash at ending period 380900
After Stock Split

648,000

648,000
400,000
1,048,000

166,050