Answered: Requirements 1. Prepare the 2018…

Requirements 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. 2. How will what you learned in this problem help you evaluate an investment?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.10P

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Statement of cash flowsdirect method applied to PR 14-1B The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 2016 and 2015, is: Dec. 31,2016 Dec. 31.201S 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 1,21,760 901,680 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. Si 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, 2016, 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 2016 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 Laming for cash dividends declared. Instructions Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.
Question 21 In preparing Titan Inc.'s statement of cash flows for the year ended December 31, 2021, the following amounts were available: Collect note receivable $615,000 Issue bonds payable 639,000 Purchase treasury stock 300,000 What amount should be reported on Titan, Inc.'s statement of cash flows for investing activities? $339,000 $315,000 $615,000 $1,254,000
21. Riverbed Corp. uses the direct method to prepare its statement of cash flows. Riverbed trial balances at December 31, 2020 and 2019, are as follows. December 31 Debits 2020 2019 Cash $34,800 $32,300 Accounts receivable 32,800 29,800 Inventory 30,900 47,000 Property, plant, & equipment 100,800 95,900 Unamortized bond discount 4,600 5,100 Cost of goods sold 252,100 378,200 Selling expenses 142,700 172,900 General and administrative expenses 136,800 152,300 Interest expense 4,300 2,600 Income tax expense 20,400 60,600 $760,200 $976,700 Credits Allowance for doubtful accounts $1,300 $1,100 Accumulated depreciation—plant assets 16,600 15,100 Accounts payable 25,300 15,600 Income taxes payable 21,000 29,000 Deferred tax liability 5,200 4,500 8% callable bonds payable 44,500…
9. Which of the following shall not be classified as cash equivalent?a. Equity securities bought three months before year endb. Three months treasury billsc. 90 days money market instrumentd. Three year treasury bills bought 60 days before its maturity 10. Which of the following should be presented as part of investing activities of statement of cash flow?a. Issuance of bonds in exchange of equipmentb. Cash payment for securities held for tradingc. Cash receipts from sale of equipmentd. Cash receipts from sale of trading securities 11. Financing activities involves transactions related toa. Current assets used to pay current obligationb. Transactions between shareholders’ and entityc. Short term liabilities used to finance the company’s operationd. Assets used in production of entity’s product 12. Which of the following statements are true?I. Investing activities are presented using direct method in the statement of cash flows.II. Financing activities are presented using direct method…
13...new A company borrows $10,000 and signs a 90-day nontrade note payable. In preparing a statement of cash flows (indirect method), this event would be reflected as a(n) addition adjustment to net income in the cash flows from operating activities section. cash outflow from investing activities. cash inflow from financing activities. cash inflow from investing activities.
Question 24 The following information was taken from the 2021 financial statements of Dunlop Corporation: Bonds payable, January 1, 2021 $ 800,000 Bonds payable, December 31, 2021 4,800,000 During 2021 • A $720,000 payment was made to retire bonds payable with a face amount of $800,000. • Bonds payable with a face amount of $320,000 were issued in exchange for equipment. In its statement of cash flows for the year ended December 31, 2021, what amount should Dunlop report as proceeds from issuance of bonds payable? $5,120,000 $4,400,000 $4,000,000 $4,480,000
4. UNMI Company had the following account balances at December 31, 2020:Cash in banks P 2,700,000Cash on hand 150,000Cash legally restricted for additions to plant (expected to be disbursed in 2003) 1,920,000 Cash in banks includes P720,000 of compensating balances against short-term borrowing arrangements. The compensating balances are not legally restricted as to withdrawal by Best. In the current assets section of UNMI’s December 31, 2002 balance sheet, total cash should be a. 4,770,000 b. 2,850,000 c. 2,700,000 d. 2,130,000 5. These are deductions made by the bank to the depositor’s bank account but not yet recorded by the depositor.a. Credit memos (CM) b. Debit memos (DM) c. Outstanding checks (OC)d. Deposits in transit (DIT) 6. Bank statements provide information about all of the following excepta. checks cleared during the period.b. NSF checks.c. bank charges for the period.d. errors made by the company. PLEASE ANSWER IMMEDIATELY
Use the following to answer questions 13 – 15: Presented below is a partial trial balance for the Princess Corporation at December 31, 2024. Account Title Debits Credits Cash & Equivalents 30,000 Cash restricted for the repayment of bonds payable 100,000 Accounts Receivable 195,000 Allowance for Doubtful Accounts 24,000 Notes Receivable (due November 1, 2025) 120,000 Interest Receivable (on notes receivable) 4,000 Raw Materials Inventory 36,000 Work in Process Inventory 38,000 Finished Goods Inventory 98,000 Marketable Securities 48,000 Prepaid Insurance (expires by June 30, 2025) 60,000 Land 100,000 Buildings 1,500,000 Equipment 400,000 Accumulated Depreciation – Buildings 740,000 Accumulated Depreciation – Equipment 230,000 Patents (net of amortization) 120,000 Unearned Revenue 48,000 Bonds Payable (mature on September 30, 2028) 500,000 Interest Payable (on bonds) 7,000 Accounts Payable 240,000 Salaries Payable 6,000 Additional…
A company settles a long-term note payable plus interest by paying $68,000 cash toward the principal amount and $5,440 cash for interest. The amount reported as a use of cash under cash flows from financing activities is a. $0; this is an investing activity. b. $0; this is an operating activity. c. $73,440. d. $68,000. e. $5,440.
Financial information of ABC Company for the year ended December 31, 2021. Description Debit Credit Cash on hand 40,000.00 Cash in bank 900,000.00 Petty cash fund 10,000.00 BSP Treasury bill, purchased on December 1, 2021 and due March 1, 2022 150,000.00 Financial assets at fair value 200,000.00 Financial assets at amortized cost 3,000,000.00 Investment in associate at equity method 1,000,000.00 Accounts receivable 580,000.00 Trade Notes receivable 100,000.00 Accrued interest on notes receivable 10,000.00 Advances to employees, collectible currently 30,000.00 Merchandise Inventory 1,500,000.00 Store supplies 50,000.00 Office supplies unused 30,000.00 Prepaid insurance 20,000.00 Land 1,500,000.00 Building 4,500,000.00 Equipment 1,000,000.00…
21.. Your answer is incorrect. Riverbed Corp. uses the direct method to prepare its statement of cash flows. Riverbed trial balances at December 31, 2020 and 2019, are as follows. December 31 Debits 2020 2019 Cash $34,800 $32,300 Accounts receivable 32,800 29,800 Inventory 30,900 47,000 Property, plant, & equipment 100,800 95,900 Unamortized bond discount 4,600 5,100 Cost of goods sold 252,100 378,200 Selling expenses 142,700 172,900 General and administrative expenses 136,800 152,300 Interest expense 4,300 2,600 Income tax expense 20,400 60,600 $760,200 $976,700 Credits Allowance for doubtful accounts $1,300 $1,100 Accumulated depreciation—plant assets 16,600 15,100 Accounts payable 25,300 15,600 Income taxes payable 21,000 29,000 Deferred tax liability 5,200 4,500 8%…
Keurig Green Mountain's Current Liabilities Following is the current assets and current liabilities portion of the balance sheet of Keurig Green Mountain for the years ended September 26, 2015, and September 27, 2014: (Dollars in thousands) September 26, 2015 September 27, 2014 Current assets: Cash and cash equivalents $59,334 $761,214 Restricted cash and cash equivalents 30,460 378 Short-term investment — 100,000 Receivables, less uncollectible accounts and return allowances of $35,459 and $66,120 at September 26, 2015 and September 27, 2014, respectively 517,936 621,451 Inventories 691,980 835,167 Income taxes receivable 51,786 — Other current assets 95,526 69,272 Deferred income taxes, net 70,181 58,038 Total current assets $1,517,203 $2,445,520 Current liabilities: Current portion of long-term debt…