Bundle: Accounting, 27th + Working Papers, Chapters 1-17
27th Edition
ISBN: 9781337759892
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 16, Problem 16.4BPR
Statement of
The comparative balance sheet of Martinez Inc. for December 31, 20Y4 and 20Y3, is as follows:
Dec 31, 20Y4 | Dec. 31,20Y3 | |
Assets | ||
Cash.................................. | $ 661,920 | $ 683,100 |
Accounts receivable (net).................................. | 992,640 0 | 914,400 |
Inventories............................................... | 1,394,40 | 1,363,800 |
Investments.............................................. | 0 | 432,000 |
Land..................................................... | 960,000 | 0 |
Equipment................................................ | 1,224,000 | 984,000 |
Accumulated |
(481,500) | (368,400) |
Total assets............................................ | $4,751,460 | $4,008,900 |
Liabilities and |
||
Accounts payable......................................... | $1,080,000 | $ 966,600 |
Accrued expenses payable................................ | 67,800 | 79,200 |
Dividends payable.................................. | 100,800 | 91,200 |
Common stock. $S par .................................... | 130,000 | 30,000 |
Paid in capital: Excess of issue price over par—common stock...... | 950,000 | 450,000 |
2,422,860 | 2,391,900 | |
Total liabilities and stockholders' equity.................. | $4,751,460 | $4,008,900 |
The income statement for the year ended December 31, 20Y4, is as follows:
Sales.......................................... | $4,512,000 | |
Cost of merchandise sold....................... | 2,352,000 | |
Gross profit.................................... | $2,160,000 | |
Operating expenses: | ||
Depreciation expense....................... | $ 113,100 | |
Other operating expenses................... | 1,344,840 | |
Total operating expenses................. | 1,457,940 | |
Operating income.............................. | $ 702,060 | |
Other income: | ||
Gain on sale of investments.................. | 156,000 | |
Income before income tax...................... | $ 858,060 | |
Income tax expense............................ | 299,100 | |
Net income.................................... | $ 558,960 |
Additional data obtained from an examination of the accounts in the ledger for 20Y4 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 $588,000 cash.
d. The common stock was issued for cash.
e. There was a $528,000 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.
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Statement of cash flow for the following:
The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:
1
Dec. 31, 20Y2
Dec. 31, 20Y1
2
Assets
3
Cash
$918,000.00
$964,800.00
4
Accounts receivable (net)
828,900.00
761,940.00
5
Inventories
1,268,460.00
1,162,980.00
6
Prepaid expenses
29,340.00
35,100.00
7
Land
315,900.00
479,700.00
8
Buildings
1,462,500.00
900,900.00
9
Accumulated depreciation-buildings
(408,600.00)
(382,320.00)
10
Equipment
512,280.00
454,680.00
11
Accumulated depreciation-equipment
(141,300.00)
(158,760.00)
12
Total assets
$4,785,480.00
$4,219,020.00
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Liabilities and Stockholders’ Equity
14
Accounts payable (merchandise creditors)
$922,500.00
$958,320.00
15
Bonds payable
270,000.00
0.00
16
Common stock, $25 par
317,000.00
117,000.00
17
Paid-in capital in…
Statement of Cash Flows—Direct Method applied to PR 16-1A
The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is as follows:
Dec. 31, 20Y3
Dec. 31, 20Y2
Assets
Cash
$ 251,860
$ 238,290
Accounts receivable (net)
92,610
84,960
Inventories
261,030
250,990
Investments
0
97,660
Land
133,790
0
Equipment
285,270
224,620
Accumulated depreciation-equipment
(67,800)
(60,500)
Total assets
$956,760
$836,020
Liabilities and Stockholders' Equity
Accounts payable
$ 172,940
$ 164,700
Accrued expenses payable
17,390
21,740
Dividends payable
9,400
7,500
Common stock, $1 par
51,100
39,290
Paid-in capital: Excess of issue price over par-common stock
194,400
113,700
Retained earnings
511,530
489,090
Total liabilities and stockholders’ equity
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The income statement for the year ended December 31, 20Y3, is as…
Statement of Cash Flows—Direct Method
The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows:
Dec. 31, 20Y6
Dec. 31, 20Y5
Assets
Cash
$234,050
$216,220
Accounts receivable (net)
84,790
77,660
Inventories
239,340
229,910
Investments
0
89,080
Land
122,770
0
Equipment
264,080
203,280
Accumulated depreciation-equipment
(61,820)
(54,820)
Total assets
$883,210
$761,330
Liabilities and Stockholders' Equity
Accounts payable
$159,860
$149,980
Accrued expenses payable
15,900
19,790
Dividends payable
8,830
6,850
Common stock, $10 par
47,690
37,310
Excess of paid-in capital over par
179,290
103,540
Retained earnings
471,640
443,860
Total liabilities and stockholders’ equity
$883,210
$761,330
The income statement for the year ended December 31, 20Y6, is as follows:
Sales
$1,406,850
Cost of merchandise sold
579,300
Gross…
Chapter 16 Solutions
Bundle: Accounting, 27th + Working Papers, Chapters 1-17
Ch. 16 - Prob. 1DQCh. 16 - Prob. 2DQCh. 16 - A corporation issued 2,000,000 of common stock in...Ch. 16 - A retail business, using the accrual method of...Ch. 16 - Prob. 5DQCh. 16 - A long-term investment in bonds with a cost of...Ch. 16 - A corporation issued 2,000,000 of 20-year bonds...Ch. 16 - Fully depreciated equipment costing 50,000 is...Ch. 16 - Prob. 9DQCh. 16 - Name five common major classes of operating cash...
Ch. 16 - Prob. 16.1APECh. 16 - Prob. 16.1BPECh. 16 - Adjustments to net incomeindirect method Ripley...Ch. 16 - Prob. 16.2BPECh. 16 - Changes in current operating assets and...Ch. 16 - Changes in current operating assets and...Ch. 16 - Prob. 16.4APECh. 16 - Prob. 16.4BPECh. 16 - Land transactions on the statement of cash flows...Ch. 16 - Land transactions on the statement of cash flows...Ch. 16 - Prob. 16.6APECh. 16 - Prob. 16.6BPECh. 16 - Cash payments for merchandisedirect method The...Ch. 16 - Cash payments for merchandisedirect method The...Ch. 16 - Prob. 16.8APECh. 16 - Prob. 16.8BPECh. 16 - Prob. 16.1EXCh. 16 - Effect of transactions on cash flows State the...Ch. 16 - Classifying cash flows Identify the type of cash...Ch. 16 - Cash flows from operating activitiesindirect...Ch. 16 - Cash flows from operating activitiesindirect...Ch. 16 - Prob. 16.6EXCh. 16 - Prob. 16.7EXCh. 16 - Determining cash payments to stockholders The...Ch. 16 - Reporting changes in equipment on statement of...Ch. 16 - Prob. 16.10EXCh. 16 - Reporting land transactions on statement of cash...Ch. 16 - Prob. 16.12EXCh. 16 - Reporting land acquisition for cash and mortgage...Ch. 16 - Reporting issuance and retirement of longterm debt...Ch. 16 - Prob. 16.15EXCh. 16 - Prob. 16.16EXCh. 16 - Prob. 16.17EXCh. 16 - Statement of cash flowsindirect method The...Ch. 16 - Prob. 16.19EXCh. 16 - Prob. 16.20EXCh. 16 - Determining selected amounts for cash flows from...Ch. 16 - Prob. 16.22EXCh. 16 - Cash flows from operating activitiesdirect method....Ch. 16 - Prob. 16.24EXCh. 16 - Free cash flow The financial statement for Nike,...Ch. 16 - Free cash flow Lovato Motors Inc. has cash flows...Ch. 16 - Statement of cash flowsindirect method The...Ch. 16 - Prob. 16.2APRCh. 16 - Statement of cash flowsindirect method The...Ch. 16 - Prob. 16.4APRCh. 16 - Prob. 16.5APRCh. 16 - Prob. 16.1BPRCh. 16 - Statement of cash flowsindirect method The...Ch. 16 - Statement of cash flowsindirect method The...Ch. 16 - Statement of cash flowsdirect method The...Ch. 16 - Statement of cash flowsdirect method applied to PR...Ch. 16 - Ethics in Action Lucas Hunter, president of...Ch. 16 - Prob. 16.3CPCh. 16 - Using the statement of cash flows You are...Ch. 16 - Dillip Lachgar is the president and majority...
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