Preparing operating activities using the direct methodAmy’s Learning Center has assembled the following data for the year ended June 30, 2018:Prepare the operating activities section of the business’s statement year ended June 30,2018, using the direct method. Payments to suppliers$ 115,000Cash payment for purchase of equipment39,000Payments to employees66,000Payment of notes payable34,000Payment of dividends7,500Cash receipt from issuance of stock22,000Collections from customers188,000Cash receipt from sale of land58,000Cash balance, June 30, 201741,000

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Payments to suppliers $ 115,000 Cash payment for purchase of equipment 39,000 Payments to employees 66,000 Payment of notes payable 34,000 Payment of dividends 7,500 Cash receipt from issuance of stock 22,000 Collections from customers 188,000 Cash receipt from sale of land 58,000 Cash balance, June 30, 2017 41,000

Payments to suppliers $ 115,000 Cash payment for purchase of equipment 39,000 Payments to employees 66,000 Payment of notes payable 34,000 Payment of dividends 7,500 Cash receipt from issuance of stock 22,000 Collections from customers 188,000 Cash receipt from sale of land 58,000 Cash balance, June 30, 2017 41,000

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 24CE

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Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following transactions: Paid shipping of $1,000 Paid installation fees of $2,000 Pays annual maintenance cost of $200 Received a 5% discount on $25,000 sales price Determine the acquisition cost of the equipment.
(Appendix 21.1) Visual Inspection The following changes in account balances were taken from Walson Companys adjusted trial balance at the end of 2019: In addition, the following information was obtained from the companys records: Land was sold, at cost, for 1,900. Dividends of 4,000 were declared and paid. Equipment was purchased for 10,400. Common stock was issued for 9,000. Beginning cash balance was 17,000. Required: Using visual inspection and the direct method, prepare Walsons 2019 statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)
Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of goods sold 660.0 Gross profit 135.0 Selling expenses 73.5 EBITDA 61.5 Depreciation expenses 12.0 Earnings before interest and taxes (EBIT) 49.5 Interest expenses 4.5 Earnings before taxes (EBT) 45.0 Taxes (40%) 18.0 Net income 27.0 a. Calculate the ratios you think would be useful in this analysis. b. Construct a DuPont equation, and compare the companys ratios to the industry average ratios. c. Do the balance-sheet accounts or the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?
Accounts payable $18,200 Accounts receivable 8,500 Accumulated depreciation—equipment 5,300 Bonds payable 17,500 Cash 25,000 Common stock 26,800 Cost of goods sold 28,800 Depreciation expense 5,000 Dividends 5,900 Equipment 45,500 Interest expense 2,300 Patents 7,260 Retained earnings, January 1, 2022 19,300 Salaries and wages expense 6,100 Sales revenue 53,800 Supplies 6,540 find Earning per share
2. Highland company provided the following information on December 31, 2018: Cash 2,000,000 Trade and other receivables 2,600,000 Property, plant and equipment-net 4,600,000 Trade and other payables 1,800,000 Share capital 4,000,000 Revaluation surplus 400,000 Retained earnings 3,000,000 The general price index numbers are 112 on January 1, 2015 which is the date of incorporation, 125 on December 31, 2017 and 280 on December 31, 2018. The property, plant and equipment were acquired on January 1, 2015 but were revalued on December 31, 2017. Required: 1. What amount should be reported as retained earnings after restatement? a. 3104000 b. 3000000 c. 3504000 d. 3400000 2. What amount should be reported as total shareholder's equity after the restatement? a. 13104000 b. 10000000 c. 13504000 d. 7000000
The following trial balance relates to Queenie as at 30 September 2019: RM'000RM'000 Revenue (note (i)) 312,890 Cost of sales 148,900 Distribution costs 42,125 Administrative expenses (note (ii))34,680 Loan note interest and dividend paid (notes (ii) and (iii)) 19,500 Investment income3200 Equity shares of 25 cents each 50,000 5% loan note (note (ii)) 30,000 Retained earnings at 1 October 20187,300 Plant and equipment at cost (note (iv)) 90,000 Accumulated depreciation at 1 October 2018: plant and equipment 32,400 Equity financial asset investments (note (v))40,000 Inventory at 30 September 201930,040 Trade receivables 42,900 Bank10,845 Current tax (note (vi)) 1,100 Deferred tax (note (vi)) 900 Trade payables23,400 460090460090 The following notes are relevant: (i) On 1 October 2018, Queenie sold one of its products for RM12 million (included in revenue in the trial balance). As part of the sale agreement, Queenie is committed to the ongoing servicing of this product until 30…
Valley TechnologyBalance SheetAs of January 24, 2023(amounts in thousands) Cash 9,700 Accounts Payable 1,500 Accounts Receivable 4,500 Debt 2,900 Inventory 3,800 Other Liabilities 800 Property Plant & Equipment 16,400 Total Liabilities 5,200 Other Assets 1,700 Paid-In Capital 7,300 Retained Earnings 23,600 Total Equity 30,900 Total Assets 36,100 Total Liabilities & Equity 36,100 Record the transactions in a journal, transfer the journal entries to T-accounts, compute closing amounts for the T-accounts, and construct a balance sheet to answer the question. Jan 25. Buy $15,000 worth of manufacturing supplies on creditJan 26. Issue $85,000 in stockJan 27. Borrow $63,000 from a bank What is the final amount in Total Liabilities? Note: Transaction amounts are provided in dollars but the balance sheet units are thousands of dollars. Please specify your answer in the same units as the balance sheet (i.e., enter the number from your updated balance sheet).
Torche CorporationBalance SheetAs of January 24, 2022(amounts in thousands) Cash 14,700 Accounts Payable 2,400 Accounts Receivable 4,800 Debt 3,700 Inventory 3,800 Other Liabilities 5,000 Property Plant & Equipment 15,800 Total Liabilities 11,100 Other Assets 900 Paid-In Capital 6,000 Retained Earnings 22,900 Total Equity 28,900 Total Assets 40,000 Total Liabilities & Equity 40,000 Record the transactions in a journal, transfer the journal entries to T-accounts, compute closing amounts for the T-accounts, and construct a balance sheet to answer the question. Jan 25. Sell product for $35,000 in cash with historical cost of $28,000Jan 26. Sell, deliver, and receive payment of $20,000 for serviceJan 27. Consume good or service and pay expense of $3,000 What is the final amount in Total Liabilities & Equity?
The trial balance of Novak Ltd. at December 31, 2020, follows: Debits Credits Cash $295,000 Sales revenue $10,299,000 FV-NI investments (at fair value) 323,000 Cost of goods sold 6,400,000 Bond investment at amortized cost 429,000 FV—OCI investments (fair value $445,000) 378,000 Notes payable (due in six months) 99,000 Accounts payable 805,000 Selling expenses 2,460,000 Investment income or loss* 11,000 Land 320,000 Buildings 2,940,000 Dividends payable 56,000 Income tax payable 106,000 Accounts receivable 705,000 Accumulated depreciation—buildings 232,000 Allowance for doubtful accounts 37,000 Administrative expenses 930,000 Interest expense 251,000 Inventory 767,000 Gain on disposal of land…
2018 2017 Assets Cash 90,800 48,400 Accounts receivable 92,800 33,000 Inventories 112,500 102,850 Prepaid expenses 28,400 26,000 Supplies 138,000 114,000 Machine 270,000 242,500 Less: Accumulated depreciation -50,000 -52,000 Total 682,500 514,750 Liabilities and Shareholder’s equities Accounts payable 112,000 67,300 Other payable 16,500 17,000 Notes payable 110,000 150,000 Total paid-in capital 220,000 175,000 Retained earnings 224,000 105,450 Total 682,500 514,750 Income statement for the year ended 31 Dec 2018 Sales revenue 392,780 Cost of goods sold 135,460 Gross profit 257,320 Adverting expense 12,410 Depreciation expense 46,500 Income taxes expense 27,280 Interest expense 4,730 Loss on sale of machine 7,500 Net income 158,900 Please prepare cash flow statement for the year ended 31 Dec 2018, show T-Account of Retain earning at 31 Dec 2018
Cornhusker Company provides the following information at the end of 2021.Cash remaining $ 4,800Rent expense for the year 7,000Land that has been purchased 21,000Retained earnings 12,400Utility expense for the year 4,900Accounts receivable from customers 7,200Service revenue recognized during the year 37,000Salary expense for the year 13,300Accounts payable to suppliers 2,200Dividends paid to shareholders during the year 3,200Common stock that has been issued prior to 2021 16,000Salaries owed at the end of the year 2,400Insurance expense for the year 3,500Retained earnings at the beginning of the year 7,300Required:Prepare the income statement, statement of stockholders’ equity, and balance sheet for Cornhusker Company on December 31, 2021. No common stock is issued during 2021.
Flawless Company’s trial balance reflected the following account balances on December 31, 2019: Cash P 1,000,000Accounts payable, net of debit balance in suppliers’ accounts amounting to P25,000 1,000,000Bonds payable 3,400,000Premium on bonds payable 200,000Deferred tax liability 400,000Property dividends payable 400,000Income tax payable 300,000Note payable, due January 31, 2020 500,000Contingent liability 150,000Share dividends payable 320,000Cash dividends payable 210,000Reserve for contingencies 430,000Estimated expense of meeting warranties 335,000Estimated damages as a result of unsatisfactory performance on a contract 268,000Mortgage payable 1,000,000Loans payable (payable in five equal annual installments) 500,000 The P1,000,000 Cash account is net of bank overdraft of P300,000 and unreleased check of P100,000 and includingcustomer’s posted check of P50,000 and sinking fund amounting to P280,000 1. How much is the total current liabilities for the year ended December 31,…