Answered: Bracewell Company reported a net income…

Bracewell Company reported a net income of $190,860 for 2014. Bracewell also reported a depreciation expense of $49,030 and a gai

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter14: Statement Of Cash Flows (cashflow)

Section: Chapter Questions

Problem 1R: The comparative balance sheet of Prime Sports Gear, Inc., at December 31, the end of the fiscal...

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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.
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. You have been asked to prepare a statement of cash flows for Prime Sports Gear for 2013. Review the worksheet called CASHFLOW that has been provided to assist you in preparing the statement. The worksheet has been designed so that as you make entries in columns D and F, column G will be automatically updated. For example, FORMULA1 should be entered as =B17+D17F17. Columns C and E are to be used to enter letter references for each of the debit and credit entries on the worksheet.
The following information was obtained from Georgia Company’s comparative balance sheets. Assume that Georgia Company’s 2017 income statement showed depreciation expense of $4,000, a gain on sale of investments of $10,000, and a net income of $50,000. Dec. 31, 2017 Dec. 31, 2016 Cash $ 20,000 $ 10,000 Accounts receivable 40,000 37,000 Inventory 50,000 45,000 Prepaid rent 5,000 7,000 Long-term investments 20,000 34,000 Plant assets 150,000 100,000 Accumulated depreciation 50,000 46,000 Accounts payable 25,000 20,000 Income tax payable 5,000 6,000 Common stock 121,000 100,000 Retained earnings 84,000 61,000 Calculate the net cash flow from operating activities using the indirect method. Select one: A. $42,000 B. $52,000 C. $43,000 D. $34,000
In its income statement for the year ended December 31, 2017, Sandhill Co. reported the following condensed data. Salaries and wages expenses $953,250 Loss on disposal of plant assets $ 171,175 Cost of goods sold 2,023,350 Sales revenue 4,530,500 Interest expense 145,550 Income tax expense 51,250 Interest revenue 133,250 Sales discounts 328,000 Depreciation expense 635,500 Utilities expense 225,500 Prepare a multiple-step income statement. (List other revenues before other expenses.) SANDHILL CO.Income Statementchoose the accounting period For the Year Ended December 31, 2017December 31, 2017For the Month Ended December 31, 2017 Select an opening section name DividendsNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31Sales RevenuesTotal RevenuesSalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome Before Income TaxesOther Revenues and…
Mazaya company reported net income of $90,000 for the year ended December 31,2011. During the year, inventories decreased by $12,000, accounts payable decreased by $18,000, depreciation expenses was $20,000 and a loss on disposal of equipment of $3,000 was recorded. Net cash provided by operating activities in 2011 using the indirect method was?
In its 2017 annual report, Campbell Soup Company reports beginning-of-the-year total assets of $7,837 million, end-of-the-year total assets of $7,726 million, total sales of $7,890 million, and net income of $887 million. (a) Compute Campbell’s asset turnover. (b) Compute Campbell’s profit margin on sales. (c) Compute Campbell’s return on assets using (1) asset turnover and profit margin and (2) net income. (Round to two decimal places.)
Bracewell Company reported net income of ₱195,000 for 2012. Bracewell also reported depreciation expense of ₱45,000 and a loss of ₱5,000 on the sale of equipment. The comparative balance sheet shows a decrease in accounts receivable of ₱15,000 for the year, a ₱17,000 increase in accounts payable, and a ₱4,000 decrease in prepaid expenses. Prepare the operating activities section—indirect method.
The comparative balance sheet of Del Ray Enterprises Inc. at December 31, 2016 and 2015, is as follows: Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2016 are as follows:a. Net income, $332,000b. Depreciation reported on the income statement, $83,400c. Equipment was purchased at a cost of $162,800 and fully depreciated equipment costing $44,800 was discarded, with no salvage realized.d. The mortgage note payable was not due until 2018 but the terms permitted earlier payment without penalty.e. 10,000 shares of common stock were issued at $20 for cash.f. Cash dividends declared and paid, $153,600InstructionsPrepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities
Use the following information from Eiffel Company’s financial statements. 2018 IncomeStatement BalanceSheets Sales $309,000 Cost of Goods Sold (145,000) Operating Expenses, other than Depreciation Expense (27,000) Depreciation expense (16,000) Gain on Sale of Plant Assets 16,000 Net Income $137,000 Dec. 31,2018 Accounts Receivable $45,300 Inventory 1,600 Accounts Payable 22,500 Accured Liabilities 900 Dec. 31, 2017 Accounts Receivable $22,250 Inventory 1,800 Accounts Payable 22,250 Accured Liabilities 1,150 Prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments. Eiffel Company Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2018 Operating…
Cardinal Industries had the following operating results for 2018: Sales = $34,318; Cost of goods sold = $24,212; Depreciation expense = $5,997; Interest expense = $2,710; Dividends paid = $1,996. At the beginning of the year, net fixed assets were $19,940, current assets were $7,054, and current liabilities were $3,992. At the end of the year, net fixed assets were $24,502, current assets were $8,684, and current liabilities were $4,673. The tax rate for 2018 was 22 percent. a. What is net income for 2018? (Do not round intermediate calculations.) b. What is the operating cash flow for 2018? (Do not round intermediate calculations.) c. What is the cash flow from assets for 2018? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) d-1. If no new debt was issued during the year, what is the cash flow to creditors? (Do not round intermediate calculations.) d-2. If no new debt was issued during the year, what is the cash flow…
Presented below is information related to Ivanhoe Company as of and for the year ended December 31, 2017. This was Ivanhoe Company’s first year of operations. (Ignore income tax effects.) ● Sales revenue $1,310,000 ● Cost of goods sold 640,000 ● Selling and administrative expenses 310,000 ● Loss on sale of plant assets 64,000 ● Unrealized gain on available-for-sale investments 13,000 ● Interest expense 5,000 ● Interest revenue 4,100 ● Loss on discontinued operations 3,000 ● Allocation to noncontrolling interest 8,500 ● Dividends declared and paid 27,700 Compute the following: (a) Income from continuing operations $enter a dollar amount (b) Net income $enter a dollar amount (c) Net income attributable to Ivanhoe Company’s controlling shareholders $enter a dollar amount (d) Comprehensive income $enter a dollar amount (e) Retained earnings balance at December 31,…
In its income statement for the year ended December 31, 2022, Crane Company reported the following condensed data. Salaries and wages expenses $381,300 Loss on disposal of plant assets $ 68,470 Cost of goods sold 809,340 Sales revenue 1,812,200 Interest expense 58,220 Income tax expense 20,500 Interest revenue 53,300 Sales discounts 131,200 Depreciation expense 254,200 Utilities expense 90,200 Prepare a multiple-step income statement. (List other revenues before other expenses.)