Loose Leaf For Introduction To Managerial Accounting
8th Edition
ISBN: 9781260190175
Author: Brewer Professor, Peter C.; Garrison, Ray H; Noreen, Eric
Publisher: McGraw-Hill Education
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Question
Chapter 13, Problem 9F15
To determine
Income tax Payables: In the
Cash Flow Statement: The statement which summarizes the net amount of cash disbursed and received with regards to a particular activity is called cash flow statement.
Determine the amount and direction of Income Tax payables adjustment to the net income in the operating activities of the cash flow statement
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Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:
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Ending Balance
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Beginning Balance
Cash
$
113,600
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$
136,600
Accounts receivable
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89,800
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96,800
Inventory
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120,600
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110,000
Total current assets
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324,000
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343,400
Property, plant, and equipment
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318,000
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308,000
Less accumulated depreciation
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106,000
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77,000
Net property, plant, and equipment
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212,000
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231,000
Total assets
$
536,000
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$
574,400
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Accounts payable
$
70,400
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$
125,000
Income taxes payable
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54,600
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74,400
Bonds payable
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132,000
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110,000
Common stock
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154,000
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132,000
Retained earnings
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125,000
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133,000
Total liabilities and stockholders’ equity
$
536,000
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$
574,400
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During the year, Ravenna paid a $13,200 cash dividend and it sold a piece of equipment for $6,600 that had originally cost…
The Net Profit of LSLS Corporation for the year is $ 2,515,250. Using the following information in
the table and find out the Net Cash Flows from Operating Activities by Indirect Method
SI. No :
Particulars
Amount ($)
1
Depreciation Expense
25,565.00
Decrease in Current Liabilities
57,677.00
3
Increase in Prepaid Insurance
67,076.00
4
Loss on Sale of Machinery
322,387.00
Gain on sale of Non Current Asset
377,553.00
6
Increase in Salaries Payable
64,704.00
7
Provision for Taxation
123,321.00
$ 2,584,921
O $ 2,548,921
O $ 2,544,921
O $ 2,458,921
Moore Company is preparing its statement of cash flows for the current year. During the year, the company retired two issuances of debt and properly recorded the transactions. These transactions were as follows:
Paid cash of $12,700 to retire bonds payable with a face value of $15,000 and a book value of $13,300.
Paid cash of $48,000 to retire bonds payable with a face value of $45,000 and a book value of $47,000.
Required:
Record, in journal entry form, the entries that Moore would make for the preceding transactions on its spreadsheet to prepare its statement of cash flows. If an amount box does not require an entry, leave it blank.
Chapter 13 Solutions
Loose Leaf For Introduction To Managerial Accounting
Ch. 13.A - Prob. 1ECh. 13.A - Prob. 2ECh. 13.A - Prob. 3ECh. 13.A - Prob. 4ECh. 13.A - Prob. 5PCh. 13.A - Prob. 6PCh. 13.A - Prob. 7PCh. 13 - Prob. 1QCh. 13 - Prob. 2QCh. 13 - Prob. 3Q
Ch. 13 - What general guidelines can you provide for...Ch. 13 - Prob. 5QCh. 13 - Prob. 6QCh. 13 - Prob. 7QCh. 13 - Prob. 8QCh. 13 - A business executive once stated, “Depreciation is...Ch. 13 - If the Accounts Receivable balance increases...Ch. 13 - Would a sale of equipment for cash be considered a...Ch. 13 - Prob. 12QCh. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Prob. 2F15Ch. 13 - Prob. 3F15Ch. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Prob. 5F15Ch. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Prob. 8F15Ch. 13 - Prob. 9F15Ch. 13 - Prob. 10F15Ch. 13 - Prob. 11F15Ch. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Prob. 14F15Ch. 13 - Prob. 15F15Ch. 13 - Prob. 1ECh. 13 - Net Cash Provided by Operating Activities For the...Ch. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Net Cash Provided by Operating Activities Changes...Ch. 13 - Prepare a Statement of Cash Flows; Free Cash Flow...Ch. 13 - Prob. 7PCh. 13 - Prob. 8PCh. 13 - Prob. 9PCh. 13 - Prepare a Statement of Cash Flows; Free Cash...Ch. 13 - Prob. 11PCh. 13 - Prepare a Statement of Cash Flows A comparative...Ch. 13 - Prob. 13PCh. 13 - Prob. 14P
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- Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:   Ending Balance  Beginning Balance Cash $ 61,000  $ 72,650 Accounts receivable  51,200   55,000 Inventory  68,700   62,500 Total current assets  180,900   190,150 Property, plant, and equipment  186,000   175,000 Less accumulated depreciation  62,000   43,750 Net property, plant, and equipment  124,000   131,250 Total assets $ 304,900  $ 321,400       Accounts payable $ 40,000  $ 71,200 Income taxes payable  31,200   36,700 Bonds payable  75,000   62,500 Common stock  87,500   75,000 Retained earnings  71,200   76,000 Total liabilities and stockholders’ equity $ 304,900  $ 321,400   During the year, Ravenna paid a $7,500 cash dividend and it sold a piece of equipment for $3,750 that had originally cost $7,800 and had…arrow_forwardRavenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:   Ending Balance  Beginning Balance Cash and cash equivalents $ 102,000  $ 122,400 Accounts receivable  81,700   88,000 Inventory  109,700   100,000 Total current assets  293,400   310,400 Property, plant, and equipment  291,000   280,000 Less accumulated depreciation  97,000   70,000 Net property, plant, and equipment  194,000   210,000 Total assets $ 487,400  $ 520,400       Accounts payable $ 64,000  $ 113,700 Income taxes payable  49,700   65,700 Bonds payable  120,000   100,000 Common stock  140,000   120,000 Retained earnings  113,700   121,000 Total liabilities and stockholders’ equity $ 487,400  $ 520,400   During the year, Ravenna paid a $12,000 cash dividend and it sold a piece of equipment for $6,000 that had…arrow_forwardRavenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:   Ending Balance  Beginning Balance Cash $ 61,000  $ 72,650 Accounts receivable  51,200   55,000 Inventory  68,700   62,500 Total current assets  180,900   190,150 Property, plant, and equipment  186,000   175,000 Less accumulated depreciation  62,000   43,750 Net property, plant, and equipment  124,000   131,250 Total assets $ 304,900  $ 321,400       Accounts payable $ 40,000  $ 71,200 Income taxes payable  31,200   36,700 Bonds payable  75,000   62,500 Common stock  87,500   75,000 Retained earnings  71,200   76,000 Total liabilities and stockholders’ equity $ 304,900  $ 321,400   During the year, Ravenna paid a $7,500 cash dividend and it sold a piece of equipment for $3,750 that had originally cost $7,800 and had…arrow_forward
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