Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 22, Problem 22.7E
Statement of Cash Flows, Indirect Method, Disclosures. Michael Hart Associates closed its books for the current year. The firm provided the following comparative balance sheets and income statement.
| Michael Hart Associates Balance Sheets At December 31 |
||||
| Assets | Ending | Beginning | ||
| Current Assets | ||||
| Cash | $ 18,869 | $ 44,400 | ||
| Held to-Maturity Debt Investments | 30,988 | 0 | ||
| Accounts Receivable - net | 24,975 | 27,750 | ||
| Merchandise Inventory | 46,250 | 37,000 | ||
| Prepaid Expenses | 25,000 | 15,000 | ||
| Total Current Assets | $ 146,082 | $ 124,150 | ||
| Noncurrent Assets | ||||
| Land | $ 900,000 | $ 725,000 | ||
| Property. Plant, and Equipment | 1,684,638 | 1,684,638 | ||
| (342,000) | (320,000) | |||
| Indefinite Life Intangible Assets | 0 | 22,575 | ||
| Total Noncurrent Assets | $2,242,638 | $2,112,213 | ||
| Total Assets | $2,388,720 | $2,236,363 | ||
| Liabilities | ||||
| Current Liabilities | ||||
| Accounts Payable | $ 74,062 | $ 39,688 | ||
| Dividends Payable | 22,200 | 0 | ||
| Income Taxes Payable | 18,000 | 10,000 | ||
| Total Current Liabilities | $ 114,262 | $ 49,688 | ||
| Noncurrent Liabilities | ||||
| Notes Payable | $ 107,208 | $ 453,610 |
| Total Noncurrent Liabilities | $ 107,208 | $ 453,610 |
| Total Liabilities | $ 221,470 | $ 503,298 |
| Shareholders' Equity | ||
| Common Stock. $1 par value | $ 685,000 | $ 500,750 |
| Additional Paid in Capital in Excess of Par - Common | 890,250 | 733,000 |
| Additional Paid m Capital - Stock Options | 37,000 | 0 |
| 555,000 | 499,315 | |
| Total Shareholders' Equity | $ 2,167,250 | $1,733,065 |
| Total Liabilities and Shareholders' Equity | $2,388,720 | $2,236,363 |
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Simon Company's year-end balance sheets follow.
At December 31
Assets
Cash
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Total assets
Liabilities and Equity
Accounts payable
Long-term notes payable.
Common stock, $10 par value
Retained earnings
Total liabilities and equity
Current Year
$ 30,800
88,100
111,000
10,900
280,000
$ 520,800
$ 128,400
98,000
163,500
130,900
$ 520,800
Current Year
1 Year Ago
$ 35,000
61,500
82,400
9,300
250,500
$ 438,700
$ 478,850
243,350
12,100
9,550
$73,750
101,750
163,500
99,700
$438,700
The company's income statements for the Current Year and 1 Year Ago, follow.
For Year Ended December 31
Sales
Cost of goods sold
Other operating expenses
$785,000
Interest expense
Income tax expense
Total costs and expenses
Net income
Earnings per share
For both the Current Year and 1 Year Ago, compute the following ratios:
743,850
$ 41,150
$ 2.52
2…
Selected financial data for Wilmington Corporation is presented below.
WILMINGTON CORPORATION
Balance Sheet
Dec. 31, Year 7
Dec. 31, Year 6
Current Assets
Cash and cash equivalents
$576,843
$305,088
Marketable securities
166,106
187,064
Accounts receivable (net)
258,387
289,100
Inventories
424,493
391,135
Prepaid expenses
55,369
25,509
Other current assets
83,053
85,029
Total Current Assets
1,564,251
1,282,925
Property, plant and equipment
1,384,217
625,421
Long-term investment
568,003
425,000
Total Assets
$3,516,471
$2,333,346
Current Liabilities
Short-term borrowings
$306,376
$170,419
Current portion of long-term debt
155,000
168,000
Accounts payable
254,111
286,257
Accrued liabilities
273,658
166,983
Income taxes payable
97,735
178,911
Total Current Liabilities
1,086,880
970,570
Long-term debt
500,000
300,000
Deferred income taxes
215,017
262,404
Total Liabilities
1,801,897
1,532,974
Common stock
$425,250…
Chapter 22 Solutions
Intermediate Accounting (2nd Edition)
Ch. 22 - Prob. 22.1QCh. 22 - Prob. 22.2QCh. 22 - Prob. 22.3QCh. 22 - Prob. 22.4QCh. 22 - Prob. 22.5QCh. 22 - How do firms reclassify gains and losses on the...Ch. 22 - Prob. 22.7QCh. 22 - Prob. 22.8QCh. 22 - Prob. 22.9QCh. 22 - Prob. 22.10Q
Ch. 22 - Prob. 22.11QCh. 22 - What approach is used in preparing the operating...Ch. 22 - Under the indirect method, do firms subtract bond...Ch. 22 - Do firms subtract pension expense from net income...Ch. 22 - Prob. 22.15QCh. 22 - Prob. 22.16QCh. 22 - Prob. 22.1MCCh. 22 - Prob. 22.2MCCh. 22 - Big Dollars Corporation's comparative financial...Ch. 22 - Prob. 22.4MCCh. 22 - Prob. 22.5MCCh. 22 - Sykes Corporation's comparative balance sheets at...Ch. 22 - Prob. 22.7MCCh. 22 - Prob. 22.8MCCh. 22 - Prob. 22.1BECh. 22 - Prob. 22.2BECh. 22 - Prob. 22.3BECh. 22 - Prob. 22.4BECh. 22 - Prob. 22.5BECh. 22 - Prob. 22.6BECh. 22 - Prob. 22.7BECh. 22 - Operating Activities Section, Indirect Method,...Ch. 22 - Prob. 22.9BECh. 22 - Prob. 22.10BECh. 22 - Prob. 22.11BECh. 22 - Prob. 22.12BECh. 22 - Prob. 22.13BECh. 22 - Operating Activities Section, Indirect Method,...Ch. 22 - Prob. 22.15BECh. 22 - Prob. 22.16BECh. 22 - Prob. 22.17BECh. 22 - Prob. 22.18BECh. 22 - Prob. 22.19BECh. 22 - Prob. 22.20BECh. 22 - Prob. 22.21BECh. 22 - Prob. 22.22BECh. 22 - Complex Transactions, Acquisitions and...Ch. 22 - Prob. 22.24BECh. 22 - Prob. 22.25BECh. 22 - Complex Transactions, Change in Accounts...Ch. 22 - Prob. 22.1ECh. 22 - Prob. 22.2ECh. 22 - Prob. 22.3ECh. 22 - Prob. 22.4ECh. 22 - Prob. 22.5ECh. 22 - Prob. 22.6ECh. 22 - Statement of Cash Flows, Indirect Method,...Ch. 22 - Prob. 22.8ECh. 22 - Prob. 22.9ECh. 22 - Prob. 22.10ECh. 22 - Statement of Cash Flows, Indirect Method....Ch. 22 - Prob. 22.15ECh. 22 - Prob. 22.16ECh. 22 - Prepare Statement of Cash Flows, Direct Method....Ch. 22 - Prob. 22.2PCh. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Prob. 22.11PCh. 22 - Prob. 22.12PCh. 22 - Prob. 22.13PCh. 22 - Statement of Cash Flows, Direct Method, Complex...Ch. 22 - Prob. 1JCCh. 22 - Prob. 1FSCCh. 22 - Prob. 1SSCCh. 22 - Surfing the Standards Case 2: Cash Flow per Share...Ch. 22 - Basis for Conclusions Cases Basis for Conclusions...Ch. 22 - Basis for Conclusions Case 2: Indirect versus...
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