LO 4 (Learning Objective 4: Construct a statement of cash flows ) Refer to the data in Exercises 1-39B and 1-40 B . Requirement 1. Prepare the statement of cash flows of Island Coffee Roasters Corporation for the month ended August 31, 2019. Using Exhibit 1-11 as a model, show with arrows the relationships among the income statement, statement of retained earnings , balance sheet , and statement of cash flows. LO 4 Refer LO 4 E1-39B . (Learning Objective 4: Construct an income statement and a statement of retained earnings) Assume Island Coffee Roasters Corporation ended the month of August 2019 with these data: Payments of cash: Acquisition of equipment....... $200,000 Cash balance, August 1, 2019…. $ 0 Dividends …………… 2,700 Cash balance, August 31, 2019…. 6,000 Retained earnings Cash receipts: August 1, 2019…………… 0 Issuance (sale) of stock to owners ........................... 13,700 Retained earnings August 31, 2019…………... ? Rent expense............................. 1,800 Utilities expense ………… 5,800 Common stock........ 13,700 Adjustments to reconcile net income to net cash Provided by operations......... 1,400 Equipment ………….. 200,000 Office supplies……………….. 7,500 Accounts payable.................... 8,900 Salary expense................... 78,100 Service revenue........................... 279,900 Requirement 1. Prepare the income statement and the statement of retained earnings for Island Coffee Roasters Corporation for the month ended August 31, 2019.
LO 4 (Learning Objective 4: Construct a statement of cash flows ) Refer to the data in Exercises 1-39B and 1-40 B . Requirement 1. Prepare the statement of cash flows of Island Coffee Roasters Corporation for the month ended August 31, 2019. Using Exhibit 1-11 as a model, show with arrows the relationships among the income statement, statement of retained earnings , balance sheet , and statement of cash flows. LO 4 Refer LO 4 E1-39B . (Learning Objective 4: Construct an income statement and a statement of retained earnings) Assume Island Coffee Roasters Corporation ended the month of August 2019 with these data: Payments of cash: Acquisition of equipment....... $200,000 Cash balance, August 1, 2019…. $ 0 Dividends …………… 2,700 Cash balance, August 31, 2019…. 6,000 Retained earnings Cash receipts: August 1, 2019…………… 0 Issuance (sale) of stock to owners ........................... 13,700 Retained earnings August 31, 2019…………... ? Rent expense............................. 1,800 Utilities expense ………… 5,800 Common stock........ 13,700 Adjustments to reconcile net income to net cash Provided by operations......... 1,400 Equipment ………….. 200,000 Office supplies……………….. 7,500 Accounts payable.................... 8,900 Salary expense................... 78,100 Service revenue........................... 279,900 Requirement 1. Prepare the income statement and the statement of retained earnings for Island Coffee Roasters Corporation for the month ended August 31, 2019.
Solution Summary: The author explains the relationship between the income statement, statement of retained earnings, balance sheet, and the statements of cash flows for the month ended August 31, 2019.
(Learning Objective 4: Construct a statement of cash flows) Refer to the data in Exercises 1-39B and 1-40 B.
Requirement
1. Prepare the statement of cash flows of Island Coffee Roasters Corporation for the month ended August 31, 2019. Using Exhibit 1-11 as a model, show with arrows the relationships among the income statement, statement of retained earnings, balance sheet, and statement of cash flows.
LO 4
Refer
LO 4
E1-39B. (Learning Objective 4: Construct an income statement and a statement of retained earnings) Assume Island Coffee Roasters Corporation ended the month of August 2019 with these data:
Payments of cash:
Acquisition of equipment.......
$200,000
Cash balance, August 1, 2019….
$ 0
Dividends ……………
2,700
Cash balance, August 31, 2019….
6,000
Retained earnings
Cash receipts:
August 1, 2019……………
0
Issuance (sale) of stock to owners ...........................
13,700
Retained earnings
August 31, 2019…………...
?
Rent expense.............................
1,800
Utilities expense …………
5,800
Common stock........
13,700
Adjustments to reconcile net income to net cash Provided by operations.........
1,400
Equipment …………..
200,000
Office supplies………………..
7,500
Accounts payable....................
8,900
Salary expense...................
78,100
Service revenue...........................
279,900
Requirement
1. Prepare the income statement and the statement of retained earnings for Island Coffee Roasters Corporation for the month ended August 31, 2019.
Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.
(Learning Objectives 1, 7: Show how to speed up cash flow from receivables;evaluate liquidity using ratios) The comparative financial statements of Diamond Pools, Inc.,for 2020, 2019, and 2018 included the following select data:Balance sheetCurrent assets:Cash...............................................Investment in trading securities......Receivables, net of allowancefor uncollectible accounts of $7,$6, and $4, respectivelyInventories .....................................Prepaid expenses............................Total current assets........................Total current liabilities.......................Income statementNet sales (all on account)...................(In millions)2020$ 9015027034050$ 900$ 550$7,7002019$ 9518028035540$ 950$ 640$5,3552018$ 6011523032535$ 765$ 650$4,745Requirements1. Compute the following ratios for 2020 and 2019:a. Current ratiob. Quick (acid-test) ratioc. Days’ sales outstanding2. Which ratios improved from 2019 to 2020 and which ratios deteriorated?…
P11-77. (Learning Objectives 2, 3: Prepare a balance sheet from a statement of cash flows)The December 31, 2017, balance sheet and the 2018 statement of cash flows for McFarlandCorporation follow:
Requirement1. Prepare the December 31, 2018, balance sheet for McFarland.
Objectives: This assignment combines knowledge from your accounting courses as well as
related information discussed in this class. Upon completion of the assignment, you will be able
to:
1. Construct a statement of cash flows based on information obtained from other financial
statements.
2. Compute changes in value for all balance sheet items.
3. Identify the relationships between key financial statements and interpret your analysis
results.
This assignment was created because knowledge of the relationships between financial
statements, along with the ability to interpret each statement, is required for managers to make
sound business decisions.
Protocols: The assignment must be completed in Excel and you may work with one partner in the
same course section. If you work with a partner, please decide which partner is responsible for
uploading the completed spreadsheet to Canvas; both partners should not upload separate
spreadsheets. Record all dollar values as whole numbers (e.g.,…
Chapter 1 Solutions
MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting
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