17.14 Problem 14The operations of The McKenzie, a small lodging operation, are becoming more complex.Ms. Jo McKenzie, the owner, has asked for your help in preparing her statement of cashflows. She is able to present you with condensed balance sheets and some additionalinformation.The McKenzieCondensed Balance SheetsDecember 31, 20X3 and 20X420X320X4CashAccounts ReceivableInvestmentsEquipmentAccumulated DepreciationTotal Assets00.00$ 10,00026,50010,000200,000(20,000)$226,500$ 6,000oT 25,5005,000325,000(40,000)$321,500Current Liabilities:Accounts PayableMortgage Payable (Current)Dividends PayableNoncurrent Liabilities:Mortgage PayableNotes Payable$ 18,0005,0005,000$ 21,0005,0005,00075,000-0-70,00040,000 Statement of Cash Flows 491Common StockRetained Earnings100,00050,000Total Liabilities and73,50080,500Owners' Equity$226,500$321,500Additional information for 20X4:1. Equipment that cost $20,000 depreciated to its salvage value of $2,000 and was sold for$8,000.2. Common stock, purchased as a long-term investment for $5,000, was sold for $15,000.3. Dividends declared totaled $15,000.yilupa ew4. Equipment was purchased for $145,000.5. Depreciation expense totaled $38,000.6. Long-term debt of $5,000 was reclassified as current and $5,000 of long-term debt waspaid.7. Common stock of $50,000 was sold and long-term debt of $40,000 (note payable) wasnit bloe aw 00.0s2 osnoborrowed.8. The McKenzie generated net income of $22,000.Do not build the SCF, only list the area of the SCF to which the items listed above should go.Consider both balance sheet accounts and additional information provided.(hint: not all items listed should go to SCF, refer to next page for the sample answer format )ItemArea of SCFcashCash-beginning of the period & end of the periodA/RCash flows from operating activitiesAl 1: sale of equipment...Al 2: sale of investment...Al 3: ....Al 4: ....AI 5: .....

The ending balances in a company's asset, liability, and equity accounts as of the date specified on…

Problem 14 The operations of The McKenzie, a small lodging operation, are becoming more complex. Ms. Jo McKenzie, the owner, has asked for your help in preparing her statement of cash flows. She is able to present you with condensed balance sheets and some additional information. The McKenzie Condensed Balance Sheets December 31, 20X3 and 20X4 20X3 20X4 Cash Accounts Receivable Investments Equipment Accumulated Depreciation Total Assets $ 10,000 26,500 $ 6,000 T 25,500 10,000 200,000 (20,000) $226,500 5,000 325,000 (40,000) $321,500 0.00 Current Liabilities: Accounts Payable Mortgage Payable (Current) Dividends Payable Noncurrent Liabilities: $ 18,000 5,000 5,000 $ 21,000 5,000 5,000 Mortgage Payable Notes Payable 75,000 -0- 70,000 40,000

Problem 14 The operations of The McKenzie, a small lodging operation, are becoming more complex. Ms. Jo McKenzie, the owner, has asked for your help in preparing her statement of cash flows. She is able to present you with condensed balance sheets and some additional information. The McKenzie Condensed Balance Sheets December 31, 20X3 and 20X4 20X3 20X4 Cash Accounts Receivable Investments Equipment Accumulated Depreciation Total Assets $ 10,000 26,500 $ 6,000 T 25,500 10,000 200,000 (20,000) $226,500 5,000 325,000 (40,000) $321,500 0.00 Current Liabilities: Accounts Payable Mortgage Payable (Current) Dividends Payable Noncurrent Liabilities: $ 18,000 5,000 5,000 $ 21,000 5,000 5,000 Mortgage Payable Notes Payable 75,000 -0- 70,000 40,000

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter2: Analyzing Transactions: The Accounting Equation

Section: Chapter Questions

Problem 1CP: CHALLENGE PROBLEM In this chapter, you learned about three important financial statements: the...

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CHALLENGE PROBLEM In this chapter, you learned about three important financial statements: the income statement, statement of owners equity, and balance sheet. As mentioned in the margin note on page 34, most firms also prepare a statement of cash flows. Part of this statement reports the cash received from customers and cash paid for goods and services. REQUIRED Take another look at the Demonstration Problem for Kenny Youngs Home and Away Inspections. Note that when revenues are measured based on the amount earned, and expenses are measured based on the amount incurred, net income for the period was 4,165. Now, compute the difference between cash received from customers and cash paid to suppliers of goods and services by completing the form provided below. Are these measures different? Which provides a better measure of profitability?
Situation: The operation of Isabel’s Bar, a small food and beverage service operation, are becoming more complex. Isabel Feliz, the owner has asked for your help in preparing her statement of cash flows. She is able to present you with condensed balance sheets and some additional information. The condensed balance sheets of the Isabell’s Bar are as follows: Isabell’s Bar Condensed Balance Sheets December 31, 2019 and 2020 Assets 2019 2020 Current Assets: Cash 15,000 15,000 Marketable Securities 5,000 5,000 Accounts Receivable 14,000 15,000 Inventory 20,000 19,000 Total Current Assets 54,000 54,000 Investments 10,000 10,000 Equipment 320,000 320,000 Accumulated Depreciation (50,000) (50,000) Total Assets 334,000 334,000 Liabilities and Owner’s Equity Current Liabilities Account Payable 18,000 19,000 Dividends Payable 20,000 20,000 Notes Payable(current)…
My text book is Hospitality Industry Financial Accounting (4th edition). I am in chapter 17 -- Statement of Cash Flows now. Problem 14 asks me to prepare the SCF as requested by Ms. McKenzie using the indirect method. The scenario will be show inthe image.
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Case Study 1The CEO of Tromerag Plastics Limited (TPL) stared across the table at his accountant withthe Income Statement for the year to 31 July 2021 and the Statement of Financial Position at31 July 2021 (These can be found in Appendix 1).“Well, then, Sally. What’s been happening to the cash position? Can you explain to me whyit has deteriorated over the last year? After all, there have been two major cash injections.”Sally Farmer had worked for TPL as the accountant since she left college four years ago.She had inherited some old manual accounting systems and had been progressivelyintroducing a new computer system with an integrated accounting software package toensure that management information was available as quickly as possible after eachaccounting period.One area which still had to be addressed, however, was the management of cash.Unfortunately for Sally, this was one of the accounting areas in which the new CEO, MichaelJames, was showing a very keen interest.Michael…
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Follow up Question: Chapter 4: Question 7 Page 89 The following are the transaction of Pampanga Transport Line (PTL) on its second month of operation. Required: a.) Copy the balances from the July statement of financial position, analyze and record the following transactions and prepare the financial statements. b.) Prepare a statement of cash flows using the cash data.
Question 34 Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Harlan Mining Co. for 2022 and 2021 are provided below. BALANCE SHEETS 12/31/22 12/31/21 Cash $408,000 $ 192,000 Accounts receivable 360,000 216,000 Inventory 384,000 480,000 Property, plant and equipment 608,000 960,000 Less accumulated depreciation (320,000) (304,000) 288,000 656,000 $1,440,000 $1,544,000 Accounts payable $ 176,000 $ 96,000 Income taxes payable 352,000 392,000 Bonds payable 360,000 600,000 Common stock 216,000 216,000 Retained earnings 336,000 240,000 $1,440,000 $1,544,000 INCOME STATEMENT For the Year Ended December 31, 2022 Sales revenue $8,400,000 Cost of sales 7,152,000 Gross profit 1,248,000 Selling expenses $600,000…