For purposes of stating the working capital of Raul Trading on December 31, 2021, the following data are submitted: Cash on hand and in bank P 610,000 Petty cash 6,000 Notes receivable 500,000 Accounts receivable 1,200,000 Merchandise inventory 1,300,000 Prepaid expenses 90,000 Accounts payable P 650,000 Notes payable (due annually at P1,000,000 payable every May 31) 2,000,000 Accrued expenses 80,000 How much total current liabilities should Raul Trading present in its statement of financial position on December 31, 2021?

For purposes of stating the working capital of Raul Trading on December 31, 2021, the following data are submitted: Cash on hand and in bank P 610,000 Petty cash 6,000 Notes receivable 500,000 Accounts receivable 1,200,000 Merchandise inventory 1,300,000 Prepaid expenses 90,000 Accounts payable P 650,000 Notes payable (due annually at P1,000,000 payable every May 31) 2,000,000 Accrued expenses 80,000 How much total current liabilities should Raul Trading present in its statement of financial position on December 31, 2021?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 43E: Determining Cash Flows from Financing Activities Solomon Construction Company reported the following...

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Determining Cash Flows from Financing Activities Solomon Construction Company reported the following amount on its balance sheet at the end of 2019 and 2018 for notes payable: Required: 1. If Solomon did not repay any notes payable during 2019, determine how much cash Solomon received from the issuance of notes payable. 2. If Solomon repaid $40,000 of notes payable during 2019, determine what amounts Solomon would report in the financing activities section of the statement of cash flows.
Selected information from Brook Corporations accounting records and financial statements for 2019 follows: On the statement of cash flows for the year ended December 31, 2019, Brook should disclose a net increase in cash in the amount of: a. 1,700,000 b. 2,400,000 c. 3,700,000 d. 4,200,000
Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)
Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.
On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
Comprehensive: Balance Sheet from Statement of Cash Flows Mills Company prepared the following balance sheet at the beginning of 2019: Additional information related to the statement of cash flows: 1. The long-term bonds have a face value of 6,000 and were issued on December 31, 2019. 2. The building was purchased on December 30, 2019. 3. The land was sold at its original cost. 4. The common stock which was sold totaled 300 shares and had a par value of 10 per share. Required: Next Level Prepare a classified balance sheet for Mills as of December 31, 2019. (Hint. Review the information on the statement of cash flows and the balances in the beginning balance sheet accounts to determine the impact on the ending balance sheet accounts.)
Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and state mcnt of cash flows: Long-term debt S 4,400 Interest expense S 398 Total liabilities 8,972 Net income 559 Total assets 38,775 Interest payments 432 Total equity 29,803 Cash flows from operations 1.015 Operating income 1.223 Income tax expenses 266 Income taxes paid 150 Required: Calculate the following ratios for Rising Stars: (a) debt to equity, (b) debt to total assets, (c) long-term debt to equity, (d) times interest earned (accrual basis), and (e) times interest earned (cash basis). (Note: Round answers to three decimal places.) CONCEPTUAL CONNECTION Interpret these results. 3.What does it mean if a bond is callable
Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectively
The working capital of BT21 Co. on December 31, 2021 are presented below:· Cash on hand – 200,000· Cash in bank – 108,000· Notes receivable – 250,000· Trade receivable – 600,000· Inventory – 650,000· Prepaid expenses – 45,000· Trade payables – 325,000· Notes payable (due annually at 500,000 payable every March 31) – 1,000,000· Accrued expenses – 40,000How much total current liabilities should BT21 Co. present in its statement of financial position on December 31, 2021?
The working capital of BT21 Co. on December 31, 2021 are presented below:·        Cash on hand – 200,000·        Cash in bank – 108,000·        Notes receivable – 250,000·        Trade receivable – 600,000·        Inventory – 650,000·        Prepaid expenses – 45,000·        Trade payables – 325,000·        Notes payable (due annually at 500,000 payable every March 31) – 1,000,000·        Accrued expenses – 40,000How much total current assets should BT21 Co. present in its statement of financial position on December 31, 2021?
For purposes of starting the working capital of Jay Trading on December 31, 2021, the following data are submitted: Cash on Hand and in Bank P  610,000 Petty Cash 6,000 Notes Receivable 500,000 Accounts Receivable 1,200,000 Merchandise Inventory 1,300,000 Accrued Expenses 90,000 Accounts Payable 650,000 Notes Payable (due annually at P1,000,000 every May 31) 2,000,000 Unearned Rent Income 80,000 How much total current liabilities should Jay Trading present in its statement of financial position on December 31, 2021?
For purposes of starting the working capital of Jay Trading on December 31, 2021, the following data are submitted: Cash on Hand and in Bank P  610,000 Petty Cash 6,000 Notes payable 500,000 Accounts Receivable 1,200,000 Merchandise Inventory 1,300,000 Accrued Expenses 90,000 Accounts Payable 650,000 Notes Receivable (collectible annually at P1,000,000 every May 31) 2,000,000 Unearned Rent Income 80,000 How much total current assets should be presented on the statement of financial position of Jay Trading on December 31, 2021?