preview

ACC 300 Week 4 Individual Problem Set I

Decent Essays

Problem Set 2: Week Four

ACC/300

P12‑1A
You are given the following transactions that occurred in the latest fiscal year.
Distinguish among operating, investing, and financing activities.
Complete the table, indicating whether each item (1) should be reported as an operating (O) activity, investing (I) activity, financing (F) activity, or as a noncash (NC) transaction reported in a separate schedule, and (2) represents a cash inflow or cash outflow or has no cash flow effect. Assume use of the indirect approach.
Transaction Where Reported Cash Inflow, Outflow, or No Effect?
Depreciation expense on the plant assets Noncash (NC) Inflow
Paid interest expense. Investing (I) Outflow
Cash from a sale of …show more content…

2012 2011
Accounts receivable $70,000 $60,000
Accounts payable 41,000 32,000
Income taxes payable 13,000 7,000

Retzlaff Company
Statement of Cash Flows (Indirect Method)
For the Year Ended December 31, 2012

Net Income $300,000

Adjustments to Reconcile Net Income to Cash from Continuing Operations
Increase in Accounts Receivable ($10,000)
Increase in Accounts Payable $9,000
Increase in Income Taxes Payable $6,000

Net Cash Inflows from Operating Activities $305,000

P12‑6A

Mazor Company
Statement of Cash Flows (Direct Method)
For the Year Ended December 31, 2012

Cash Inflows from Revenue $15,000
Cash Outflows for Expenses $10,000

Income Before Income Taxes $300,000

Net Cash Inflows from Operating Activities $305,000

P12‑7A
The following are the financial records of Helwany Company.
HELWANY COMPANY
Comparative Balance Sheets
December 31

Assets 2012 2011
Cash $35,000 $20,000
Accounts receivable $20,000

Get Access