urrand Corporation's accumulated depreciation increased by $12,767, while patents decreased by $2,957 between consecutive balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year In addition, the income statement showed a gain of $3,322 from the sale of land. Reconcile net income of $56,004 to net cash flows from operating activities.

urrand Corporation's accumulated depreciation increased by $12,767, while patents decreased by $2,957 between consecutive balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year In addition, the income statement showed a gain of $3,322 from the sale of land. Reconcile net income of $56,004 to net cash flows from operating activities.

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Description: Ourrand Corporation's accumulated depreciation increased by $12,767, while patents decreased by $2,957 between consecutive balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year.In addition, the inc

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 2BE

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Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for major repairs Depreciation expense recorded for the year is $25,000 If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jadas balance sheet resulting from this years transactions? What amount did Jada report on the income statement for expenses for the year?
The comparative balance sheet of Prime Sports Gear, Inc., at December 31, the end of the fiscal year, is as follows: Additional data obtained from the records of Prime Sports Gear are as follows: a. Net income for 2013 was 121,610. b. Depreciation reported on income statement for 2013 was 46,500. c. Purchased 165,000 of new equipment, putting 90,000 cash down and issuing 75,000 of bonds for the balance. d. Old equipment originally costing 19,500, with accumulated depreciation of 7,950, was sold for 8,000. e. Retired 60,000 of bonds. f. Declared cash dividends of 64,000. g. Issued 1,500 shares of common stock at 27 cash per share. Open the file CASHFLOW from the website for this book at cengagebrain.com. First, enter the formulas. Then, complete the worksheet in the manner described next. According to the problem, cash increased from 39,600 to 67,210 during the year. This is a 27,610 increase. To record this increase on the worksheet, move to row 17. Since this is the first account you are analyzing, enter the letter a in column C. Then enter 27610 in column D (a debit since cash increased). This brings the year-end balance (column G) to 67,210, its proper balance. Now move to the bottom part of the statement where you see the categories Operating Activities, Investing Activities, and so on. The credit side of the entry has to be entered here. The proper space for this cash entry is on row 59. Enter the letter a in cell E59 and 27610 in cell F59. Notice the totals at the bottom of the page (row 60) now agree. The next account balance that changed is accounts receivable. It increased by 9,035. To enter this change on the worksheet, enter the letter b in cell C18 and 9035 in cell D18 (again, a debit since accounts receivable increased). This brings the year-end balance in column G to 121,250, its proper balance. The change in accounts receivable balance is an operating activity adjustment (as explained in your textbook). Enter the credit side of this entry in cells E34 and F34, and enter the explanation Increase in accounts receivable in cell A34. Note: Your textbook probably shows Net income as the first item under Operating Activities. We will get to that later. The sequence in which you enter items on this worksheet is not important. All other balance sheet accounts must be analyzed in the same manner, placing appropriate debit or credit entries in the top part of the worksheet to obtain the proper balances in column G, and then entering the second side of the entry in the appropriate row on the bottom part of the worksheet. You should use letter references to identify all entries. Also, you must enter a description of the entry in column A under the appropriate activity category. Although a sequence of analyzing the balance sheet from top to bottom is suggested here, this order is not necessary. As mentioned earlier, your textbook may specify a different sequence. Also, note that some accounts may have both debit and credit adjustments to them. The worksheet is not a substitute for a statement of cash flows, but it does provide you with all the numbers you need to properly prepare one. You will be done with your analysis when: a. The individual account balances at December 31, 2013, as shown on the worksheet (column G) equal those shown in the given problem data. b. The transaction column totals are equal (cells D60 and F60). c. The sum of the operating, investing, and financing activities (cell G59) equals the change in cash (cell D59 or F59). When you are finished, enter your name in cell A1. Save your completed file as CASHFLOW2. Print the worksheet when done. Also print your formulas. Check figure: Total credits at 12/31/2013 (cell G31), 860,460.
Statement of Cash Flows A list of Fischer Companys cash flow activities is presented here: a. Patent amortization expense, 3,500 b. Machinery was purchased for 39,500 c. At year-end, bonds payable with a face value of 20,000 were issued for 17,000 d. Net income, 47,200 k. Inventories increased by 15,400 e. Dividends paid, 16,000 f. Depreciation expense, 12,900 g. Preferred stock was issued for 13,600 h. Investments were acquired for 21,000 i. Accounts receivable increased by 4,300 j. Land was sold at cost, 11,000 k. Inventories increased by 15,400 l. Accounts payable increased by 2,700 m. Beginning cash balance, 19,400 Required: Prepare Fischers statement of cash flows.
Durrand Corporation's accumulated depreciation increased by $11,449, while patents decreased by $3,432 between consecutive balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $3,255 from sale of land. The company earned a net income of $45,501. Assuming there were no changes in noncash current assets and liabilities, determine the net cash flows from operating activities under the indirect method.
Durrand Corporation's accumulated depreciation increased by $13,827, while patents decreased by $2,267 between consecutive balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $4,191 from sale of land. The company earned a net income of $41,464. Assuming there were no changes in noncash current assets and liabilities, determine the net cash flows from operating activities under the indirect method. $fill in the blank 1
During two consecutive balance sheet dates, accumulated depreciation for Durrand Corporation climbed by $11,258 while patents fell by $2,787. Depreciable or intangible assets were neither bought nor sold during the year. The financial statements also revealed a gain of $3,589 on the selling of property. The business had a net profit of $44,069 dollars. Determine the net cash flows from operational operations using the indirect approach, assuming there were no changes to the quasi current assets.
Eastlund Corporation's accumulated depreciation—equipment account increased by $6,320, while $2,450 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $13,510 from the sale of investments. Reconcile a net income of $126,300 to net cash flows from operating activities.$fill in the blank 1
Durrand Corporation's accumulated depreciation increased by $13,732, while patents decreased by $3,986 between consecutive balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $3,365 from sale of land. The company earned a net income of $44,155. Determine net cash flow from operating activities under the indirect method.
Kingston Corporation's accumulated depreciation—equipment account increased by $4,300, while $2,800 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $3,300 from the sale of investments. Reconcile a net income of $48,700 to net cash flows from operating activities.
Omni Corporation's accumulated depreciation—equipment account increased by $10,100, while $6,500 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a loss of $7,700 from the sale of land. Reconcile a net income of $114,600 to net cash flow from operating activities: $________
Kingston Corporation's accumulated depreciation—equipment account increased by $6,600, while $4,300 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a loss of $5,000 from the sale of investments. Reconcile a net income of $75,100 to net cash flows from operating activities.$fill in the blank 1
Congress Corporation's accumulated depreciation—equipment account increased by $5,000, while $3,200 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $3,800 from the sale of investments. Reconcile a net income of $56,300 to net cash flows from operating activities __________________