Question 6 of 14View PoliciesCurrent Attempt in ProgressRover Corporation reports the following information:Net incomeDepreciation expenseLoss on the sale of investmentsIncrease in accounts receivable$2,500,000O $3,077,000.O $2,500,000.O $1,923,000.O $2,757,000.340,00077,000160,000Rover should report cash provided by operating activities of

The earnings a business makes from ongoing, regular business activities like producing and selling…

Answered: Current Attempt in Progress Rover…

Accounting (Text Only)

26th Edition

ISBN:9781285743615

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter10: Fixed Assets And Intangible Assets

Section: Chapter Questions

Problem 10.26EX

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Statement of cash flowsdirect method applied to PR 1618 The Comparative balance sheet of Merrick Equipment Co. for Dec. 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash.................................. 70,720 47,940 Accounts receivable (net).................................. 207,230 188,190 Inventories............................................... 298,520 289,850 Investments.............................................. 0 102,000 Land..................................................... 295,800 0 Equipment................................................ 438,600 358,020 Accumulated depreciationequipment.................... (99,110) (184,320) Total assets............................................ 1,211,760 901,680 Liabilities and Stockholders' Equity Accounts payable......................................... 205,700 194,140 Accrued expenses payable................................. 30,600 26,860 Dividends payable....................................... 25,500 20,400 Common stock, 1 par..................................... 202,000 102,000 Paid-in capital: Excess of issue price over parcommon stock...... 354,000 204,000 Retained earnings......................................... 393,960 354,280 Total liabilities and stockholders' equity.................. 1,211,760 901,680 The income statement for the year ended December 31. 20Y9, is as follows: Sales........................................... 2,023,898 Cost of merchandise sold........................ 1,245,476 Gross profit..................................... 778,422 Operating expenses: Depreciation expense........................ 14,790 Other operating expenses.................... 517,299 Total operating expenses.................. 532,089 Operating income............................... 246,333 Other expenses: Loss on sale of investments................... (10,200) Income before income tax....................... 236,133 Income tax expense............................. 94,453 Net income..................................... 141,680 Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows: a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. The investments were sold for 91,800 cash. d. The common stock was issued for cash. e. There was a 102,000 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.
Statement of cash flowsdirect method The comparative balance sheet of Martinez Inc. for December 31, 20Y4 and 20Y3, is as follows: Dec 31, 20Y4 Dec. 31,20Y3 Assets Cash.................................. 661,920 683,100 Accounts receivable (net).................................. 992,640 0 914,400 Inventories............................................... 1,394,40 1,363,800 Investments.............................................. 0 432,000 Land..................................................... 960,000 0 Equipment................................................ 1,224,000 984,000 Accumulated depreciationequipment.................... (481,500) (368,400) Total assets............................................ 4,751,460 4,008,900 Liabilities and Stockholders' Equity Accounts payable......................................... 1,080,000 966,600 Accrued expenses payable................................ 67,800 79,200 Dividends payable.................................. 100,800 91,200 Common stock. S par .................................... 130,000 30,000 Paid in capital: Excess of issue price over parcommon stock...... 950,000 450,000 Retained earnings......................................... 2,422,860 2,391,900 Total liabilities and stockholders' equity.................. 4,751,460 4,008,900 The income statement for the year ended December 31, 20Y4, is as follows: Sales.......................................... 4,512,000 Cost of merchandise sold....................... 2,352,000 Gross profit.................................... 2,160,000 Operating expenses: Depreciation expense....................... 113,100 Other operating expenses................... 1,344,840 Total operating expenses................. 1,457,940 Operating income.............................. 702,060 Other income: Gain on sale of investments.................. 156,000 Income before income tax...................... 858,060 Income tax expense............................ 299,100 Net income.................................... 558,960 Additional data obtained from an examination of the accounts in the ledger for 20Y4 are as follows: a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. The investments were sold for 588,000 cash. d. The common stock was issued for cash. e. There was a 528,000 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.
Statement of cash flowsindirect method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash. 918,000 964,800 Accounts receivable (net) 828,900 761,940 Inventories 1,268,460 1,162,980 Prepaid expenses 29,340 35,100 Land 315,900 479,700 Buildings 1,462.500 900,900 Accumulated depreciationbuildings (408,00) (382,320) Equipment 512,280 454,680 Accumulated depreciationequipment (141,300) (158,760) Total assets 4,785,480 4,219,020 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) 922,500 958.320 Bonds payable 270,000 0 Common stock. 25 par 317,000 117,000 Paid-in capital: Excess of issue price over parcommon stock 758,000 558,000 Retained earnings 2,517,980 2,585,700 Total liabilities and stockholders' equity 4,785,480 4,219,020 The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 20Y2 are as follows: Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
Statement of cash flowsdirect method applied to PR 131B The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 20Y9 and 20Y8, is: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash 70,720 47,940 Accounts receivable (net) 207,230 188,190 Inventories 298,520 289,850 Investments 0 102,000 Land 295,800 0 Equipment 438,600 358,020 Accumulated depreciationequipment (99,110) (84,320) Total assets 1,211,760 901,680 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors).................. 205,700 194,140 Accrued expenses payable (operating expenses) 30,600 26,860 Dividends payable 25,500 20,400 Common stock. 1 par 202,000 102,000 Paid-in capital: Excess of issue price over parcommon stock 354,000 204,000 Retained earnings 393,960 354,280 Total liabilities and stockholders' equity 1,211,760 901,680 The income statement for the year ended December 31,20Y9, is as fallow s: Sales 2,023,898 Cost of goods sold 1,245,476 Gross profit 778,422 Operating expenses: Depreciation expense 14,790 Other operating expenses 517,299 Total operating expenses 532,089 Operating income 246,333 Other expenses: Loss on sale of investments (10,200) Income before income tax 236,133 Income tax expense 94,453 Net income 141,680 Additional data obtained from an examination of the- accounts in the ledger for 20Y9 are as follows: A. Equipment and land were acquired for cash. B. There were no disposals of equipment during the year. C. The investments were sold for 91,800 cash. D. The common stock was issued for cash. E. There was a 102,000 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.
Statement of cash flowsindirect method The comparative balance sheet of Harris Industries Inc. at December 31, 20Y4 and 20Y3, is as follows: Dec 31, 20Y4 Dec 31, 20Y3 Assets Cash 443,240 360,920 Accounts receivable (net) 665,280 592,200 Inventories 887,880 1,022,560 Prepaid expenses 31,640 25,200 Land 302,400 302,400 Buildings 1,713,600 1,134,000 Accumulated depreciationbuildings (466,200) (414,540) Machinery and equipment 781,200 781,200 Accumulated depreciationmachinery and equipment (214,200) (191,520) Patents 106,960 112,000 Total assets 4,251,800 3,724,420 Liabilities and Stockholders' Equity Accounts payable 837,480 927,080 Dividends payable 32,760 25,200 Salaries payable 78,960 87,080 Mortgage note payable, due in 10 years 224,000 0 Bonds payable 0 390,000 Common stock, S par 200,400 50,400 Paid-in capital: Excess of issue price over parcommon stock 366,000 126,000 Retained earnings 2,512,200 2,118,660 Total liabilities and stockholders' equity 4,251,800 3,724,420 An examination of the income statement and the accounting records revealed the following additional information applicable to 20Y4: a. Net income, 524,580. b. Depreciation expense reported on the income statement: buildings, 51,660; machinery and equipment, 22,680. c. Patent amortization reported on the income statement, 5,040. d. A building was constructed for 579,600. e. A mortgage note for 224,000 was issued for cash. f. 30.000 shares of common stock were issued at 13 in exchange for the bonds payable. g. Cash dividends declared, 131,040. Instructions Prepare a statement of cash flows, using the indirect method.
Statement of cash flows direct method applied to PR 131A The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2 is as follows: Dec. 31, 20Y3 Dec. 31, 20Y2 Assets Cash 155,000 150,000 Accounts receivable (net) 450,000 400,000 Inventories 770,000 750,000 Investments 0 100,000 Land 500,000 0 Equipment 1,400,000 1,200,000 Accumulated depreciationequipment (600,000) (500,000) Total assets Liabilities and Stockholders' Equity 2,675,000 2,100,000 Accounts payable (merchandise creditors) 340,000 300,000 Accrued expenses payable (operating expenses) 45,000 50,000 Dividends payable 30,000 25,000 Common stock, 4 par 700,000 600,000 Paid-in capital: Excess of issue price over parcommon stock 200,000 175,000 Retained earnings 1,360,000 950,000 Total liabilities and stockholders' equity 2,675,000 2,100,000 The income statement for the year ended December 31, 20Y3, is as follows: Sales 3,000,000 Cost of goods sold 1,400,000 Gross profit 1,600,000 Operating expenses: Depreciation expense 100,000 Other operating expenses. 950,000 Total operating expenses 1,050,000 Operating income 550,000 Gain on sale of investments 75,000 Income before income tax 625,000 Income tax expense 125,00 Net income 500,000 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: A. The investments were sold for 175,000 cash. B. Equipment and land were acquired for cash. C. There were no disposals of equipment during the year. D. The common stock was issued for cash. E. There was a 90,000 debit to Retained Earnings for cash dividends declared. Instructions Prepare a .statement of cash flows, using the direct method of presenting cash flows from operating activities.

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