Exercise 16-16BDirect: Computing
For each of the following separate cases, compute the required cash flow information.
Case X: Compute cash received from customers
Sales................................ $515,000
Accounts receivable. Ending balance..... 33,500
Case Y: Compute cash paid for rent
Rent expense......................... $139.3.00
Rent payable. Beginning balance......... 7.S00
Rent payable. Ending balance........... £.200
Case Z: Compute cash paid for inventory
Cost of goods sold.................. $525,000
Inventory, Beginning balance......... 15B.&00
Accounts payable, Beginning balance ... 56,700
Inventory, Ending balance............ 130,400
Accounts payable, Ending balance..... 32,000
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FUND. ACCOUNTING PRINCIPLES >CUSTOM<
- Miller Enterprises deposits the cash received during each day at the end of the day. Miller deposited $48,287 on October 3 and $50,116 on October 4. Cash register records and other documents E supporting the deposits are summarized as follows: 10.8 10 Cash sale: $36,690 $49,310 @ Collections on account 10,875 9,813 Total receipts $41565 $541123 mn: HUI Required: 1. Calculate the amount 0? cash over or cash shun for each day. 2. Prepare the journal entry to record the receipt and deposit of cash on October 3. 3. Prepare the journal entry to record the receipt and deposit of cash on October 4. 4. CONCEPTUAL CONNECTION If you were the manager with responsibility over the cash registers. how would you use this information?arrow_forwardStatement of cash flowsdirect method 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 depreciationequipment.................... (481,500) (368,400) Total assets............................................ 4,751,460 4,008,900 Liabilities and Stockholders' Equity 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 parcommon stock...... 950,000 450,000 Retained earnings......................................... 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.arrow_forwardStatement of cash flows indirect method The comparative balance sheet of Harris Industries Inc. at December 31, 20Y4 and 20Y3, is as follows: Dec. 31, 20Y4 Dec. 31, 20Y3 Assets Cash 443,240 360,920 Accounts receivable {net 665,280 592,200 Inventories 887,880 1,022,560 Prepaid expenses 31,640 25,200 Land 302,400 302,400 Buildings 1,713,600 1,134,000 Accumulated depreciationbuildings (466,200) (414,540) Machinery and equipment 781,200 781,200 Accumulated depreciationmachinery and equipment (214,200) (191,520) Patents 106,960 112,000 Total assets 4,251,800 3,724,420 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors|) 837,480 927,080 Dividends payable 32,760 25,200 Salaries payable 78,960 87,080 Mortgage note payable, due in nine years 224,000 0 Bonds payable 0 390,000 Common stock, 5 par 200,400 50,400 Paid-in capital. Excess of issue price over parcommon stock 366,000 126,000 Retained earnings 2,512,200 2,118,660 Total liabilities and stockholders' equity 4,251,800 3,724,420 An examination of the income statement and the accounting records revealed the following additional information applicable to 20Y4: A. Net income, 524,580. B. Depreciation expense reported on the income statement: buildings, 51,660; machinery and equipment, 22,680. C. Patent amortization reported on the income statement, 5,040. D. A building was constructed for 579,600. E. A mortgage note for 224,000 was issued for cash. F. 30,000 shares of common stock were issued at 13 in exchange for the bonds payable. G. Cash dividends declared, 131,040. Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.arrow_forward
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