Pearson eText for Financial Accounting -- Instant Access (Pearson+)
5th Edition
ISBN: 9780137525423
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON+
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 11, Problem 9SE
Operating activities—direct method (Learning Objective 4) 5-10 min.
Juarez Equipment, Inc., assembled the following data related to its cash transactions for the year ended June 30, 2018:
Payment of dividends.......................................................................................... | $ 16,000 |
Proceeds from issuance of stock........................................................................ | 21,000 |
Collections from customers................................................................................ | 213,000 |
Proceeds from sale of land.................................................................................. | 61,000 |
Payments to suppliers........................................................................................ | 92,000 |
Purchase of equipment with cash....................................................................... | 38,000 |
Payments to employees...................................................................................... | 67,000 |
Payment of long-term note payable.................................................................... | 41,000 |
Prepare Juarez Equipment s statement of
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
(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?…
(Learning Objectives 1, 7: Show how to speed up cash flow from receivables;evaluate liquidity through ratios) Norfolk Co., Inc., an electronics and appliance chain,reported these figures in millions of dollars:Net sales .........................................Receivables at end of year...............2019$398,5003,8602018$418,5004,110Requirements1. Compute Norfolk’s days’ sales in receivables or days’ sales outstanding (DSO) during 2019.(For this exercise, use “net sales” for “net credit sales” when calculating ratios.)2. Is Norfolk’s DSO long or short? Nico Networks takes 39 days to collect its average levelof receivables. Divencenzo, the overnight shipper, takes 33 days. What causes Norfolk’scollection period to be so different?
rect method.
Carlson Software Corp. has assembled the following data for the years ending December 31,
P12-60A (Learning Objectives 2, 3: Prepare the statement of cash flows-indirect method)
2016 and 2015
3. Prepal
cash flows from opl
4
5
6
7
8
$
10
11
12
13
Current Accounts:
Current assets:
Cash and cash equivalents
Accounts receivable
Inventories
Prepaid expenses
Current liabilities:
Accounts payable
Income tax payable
Accrued liabilities
Transaction Data for 2016:
Acquisition of land by issuing
long-term note payable.....
Stock dividends
Collection of loan.
Depreciation expense.
Purchase of building
with cash.
Retirement of honds payable
by issuing common stock....
Purchase of long-term
investment with cash........
$202,000
34,900
12,400
19,000
159,000
80,000
45,300
31, 2016 Format
December 31,
2016
$ 105,800
18,000
8,600
2,900
equipment
Amortization expense
$ 9,300
28,600
15,000
Purchase of treasury stock.
Loss on sale of equipment......
Payment of cash dividends
Issuance of…
Chapter 11 Solutions
Pearson eText for Financial Accounting -- Instant Access (Pearson+)
Ch. 11 - Prob. 1DQCh. 11 - Prob. 2DQCh. 11 - Prob. 3DQCh. 11 - A company issued bonds during the year. Would this...Ch. 11 - Prob. 5DQCh. 11 - When using the indirect method, why are gains on...Ch. 11 - Prob. 7DQCh. 11 - Prob. 8DQCh. 11 - Prob. 9DQCh. 11 - Prob. 10DQ
Ch. 11 - Prob. 1SCCh. 11 - Operating activities are most closely related to:...Ch. 11 - Prob. 3SCCh. 11 - Prob. 4SCCh. 11 - Finlay, Inc., earned net income of 63,000 after...Ch. 11 - Prob. 6SCCh. 11 - Prob. 7SCCh. 11 - Prob. 8SCCh. 11 - Prob. 9SCCh. 11 - Elliot Enterprises had operating expenses of...Ch. 11 - Prob. 11SCCh. 11 - Prob. 12SCCh. 11 - Prob. 1SECh. 11 - Prob. 2SECh. 11 - Prob. 3SECh. 11 - Prob. 4SECh. 11 - Prob. 5SECh. 11 - Prob. 6SECh. 11 - Operating activitiesindirect method (Learning...Ch. 11 - Prob. 8SECh. 11 - Operating activitiesdirect method (Learning...Ch. 11 - Prob. 10SECh. 11 - Prob. 11SECh. 11 - Prob. 12SECh. 11 - Prob. 13AECh. 11 - Prob. 14AECh. 11 - Prob. 15AECh. 11 - Preparing a statement of cash flowsindirect method...Ch. 11 - Prob. 17AECh. 11 - Prob. 18AECh. 11 - Prob. 19AECh. 11 - Prob. 20AECh. 11 - Prob. 21AECh. 11 - Prob. 22BECh. 11 - Prob. 23BECh. 11 - Preparing a statement of cash flowsindirect method...Ch. 11 - Prob. 25BECh. 11 - Prob. 26BECh. 11 - Prob. 27BECh. 11 - Prob. 28BECh. 11 - Prob. 29BECh. 11 - Calculating certain information using the direct...Ch. 11 - Prob. 31APCh. 11 - Prob. 32APCh. 11 - Prob. 33APCh. 11 - Prob. 34APCh. 11 - Prob. 35APCh. 11 - Prob. 36APCh. 11 - Prob. 37BPCh. 11 - Prob. 38BPCh. 11 - Prob. 39BPCh. 11 - Prob. 40BPCh. 11 - Prob. 41BPCh. 11 - Prob. 42BPCh. 11 - Prob. 1CECh. 11 - Prob. 1CPCh. 11 - Apply Your Knowledge Ethics In Action Case 1....Ch. 11 - Case 2. Kevin Sailors, the CEO of Candle...Ch. 11 - Financial Analysis Purpose: To help to familiarize...Ch. 11 - Prob. 1IACh. 11 - Small Business Analysis Purpose: To help you...Ch. 11 - Written Communication Prepare a paper outlining...Ch. 11 - Comprehensive Problem The Accounting Cycle and...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- (Learning Objectives 1, 7: Show how to speed up cash flow from receivables;evaluate liquidity through ratios) Geneva Co., Inc., an electronics and appliance chain,reported these figures in millions of dollars:Net sales .........................................Receivables at end of year...............2019$523,1253,8602018$543,1254,510Requirements1. Compute Geneva’s days’ sales in receivables or days’ sales outstanding (DSO) during2019. (For this exercise, use “net sales” for “net credit sales” when calculating ratios.)2. Is Geneva’s DSO long or short? Kurzwel Networks takes 39 days to collect its averagelevel of receivables. Domarko Freight, the overnight shipper, takes 33 days. What causesGeneva’s collection period to be so different?arrow_forwardCalculate liquidity measures The following amounts were reported on theDecember 31, 2013, balance sheet: Cash.......................................... $ 8,000Accounts receivable .................. 22,000Common stock ......................... 40,000Wages payable ......................... 5,000Retained earnings ..................... 80,000Land .......................................... 20,000Accounts payable ..................... $ 15,000Bonds payable .......................... 120,000Merchandise inventory .............. 30,000Buildings and equipment, net ofaccumulated depreciation ..... 180,000 Required:a. Calculate working capital at December 31, 2013.b. Calculate the current ratio at December 31, 2013.c. Calculate the acid-test ratio at December 31, 2013.arrow_forwardVienna Company provided the following information at the current year-end: Cash in bank, per bank statement …………………………………….….…… . 200,000Petty cash fund ………………………………………………………..…………. 3,000Commercial paper with maturity of 2 months ………………………..…. 55,000 Customer postdated checks ……………………………………………………. 14,000 Plant expansion fund …………………………………………………………….. 150,000Bond sinking fund (Bonds are due in 5 months) ……………………………. 120,000Cash fund for payment of salaries ……………………………………………. 200,000Sales ……………………………………………………………………………..…. 4,250,000 Sales returns and allowance …………………………………………………….. 140,000Accounts receivable …………………………………………………………….. 430,000 Allowance for doubtful accounts before adjustment - debit balance…. … 7,600 Deposit in transit and outstanding checks were P80,000 and P55,000 respectively at year-end. The entity estimated that 10% of the accounts receivable balance will be uncollectible. 1) What amount of cash and cash equivalent should be reported on December 31, 2023? 2)…arrow_forward
- TO Culate net o check if Assets equal Liabilities I cdn.student.uae.examus.n ACCT101_FEX_2021_2_Male Purpose of the Statenment of Cash Flows: 9 క్క 18 a. To calculate net income 95abe18 e18c o check if Assets equal Liabilities b. 95abe18 С. To calculate Assets turnover 95abe18ce33 d. To know where a company spends its cash abe18ce33 95a18ce33 95abe18ce33 95abe18ce33 95abe18ce33 95abe18ce33 MacBook Pro 80 F3 000 95abe1 F4 FS 48 F6 E F7 6 & DII 7 V T F9 8A 99 Cor R. IIarrow_forwardThe following is a list of various cash payments and cashreceipts:Cash paid to suppliers and employees . . . . . . . . $420,000Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000Interest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000Purchases of plant assets . . . . . . . . . . . . . . . . . 45,000Interest and dividends received . . . . . . . . . . . . . 17,000Payments to settle short-term bank loans . . . . . 29,000Income taxes paid . . . . . . . . . . . . . . . . . . . . . . . 23,000Cash received from customers . . . . . . . . . . . . . 601,000 Based only on the above items, net cash flows from operat-ing activities are: a. $138,000b. $91,000c. $120,000d. $163,000arrow_forwardCompute cash flows from financing activities using the following company information. Cash received from short-term loan. . . . . . . . . . . $20,000 Cash dividends paid. . . . . . . . . . . . . . . . . . . $16,000 Purchase of short-term stock investments. . . . . . 5,000 Interest paid. . . . . . . . . . . . . . . . . . . . . . . . . 8,000arrow_forward
- |0N C Mc Graw Hill M Mim IN CQ X 77°F Raining now 07 of 12 Concepts completed Multiple Select Question https://learning.mheducation.com/static/awd/index.html?_t=1662829861804#/ In Reports cash disbursements Select all that apply Which of the following statements regarding the statement of cash flows are correct? The financial statement that is typically prepared first The final financial statement that is typically prepared Reports cash receipts D It is an optional financial statement Read About the Concept V G|DC|PD| M C va Rate your confidence to submit your answer. Need help? Review these concept resources. Medium O Low Ⓒ2022 McGraw Hill. All Rights Reserved. f6 ta f7 D h e Privacy | Terr 0 hp 18arrow_forwardApex Company prepared the statement of cash flows for the current year that is shown below:Apex CompanyStatement of Cash Flows—Indirect MethodOperating activities:Net income ........................................................................................ $ 40,000Adjustments to convert net income to cash basis:Depreciation charges .................................................................... $ 22,000Increase in accounts receivable .................................................... (60,000)Increase in inventory ..................................................................... (25,000)Decrease in prepaid expenses ...................................................... 9,000Increase in accounts payable ........................................................ 55,000Decrease in accrued liabilities ....................................................... (12,000)Increase in deferred income taxes ................................................ 5,000 (6,000)Net cash provided…arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
The ACCOUNTING EQUATION For BEGINNERS; Author: Accounting Stuff;https://www.youtube.com/watch?v=56xscQ4viWE;License: Standard Youtube License