ACCT 211 Homework 12 Reporting Cash Flows Problems Assignment solutions complete answers

ACCT 211 Homework 12 Reporting Cash Flows Problems Assignment solutions complete answers 

 

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Lansing Company’s current-year income statement and selected balance sheet data at December 31 of the current and prior years follow.
 

LANSING COMPANY
Income Statement
For Current Year Ended December 31
Sales revenue
$ 109,200
 
 
 
 
Expenses
 
 
 
 
 
Cost of goods sold
46,000
 
 
 
 
Depreciation expense
14,000
 
 
 
 
Salaries expense
22,000
 
 
 
 
Rent expense
9,400
 
 
 
 
Insurance expense
4,200
 
 
 
 
Interest expense
4,000
 
 
 
 
Utilities expense
3,200
 
 
 
 
Net income
$ 6,400
 
 
 
 
  

LANSING COMPANY
Selected Balance Sheet Accounts
At December 31
Current Year
Prior Year
Accounts receivable
$ 6,000
$ 6,600
Inventory
2,380
1,740
Accounts payable
4,800
5,400
Salaries payable
960
740
Utilities payable
300
200
Prepaid insurance
300
360
Prepaid rent
300
220
Required:
Prepare the operating activities section of the statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.)

 

Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, and (4) all debits to Accounts Payable reflect cash payments for inventory.
 

FORTEN COMPANY
Income Statement
For Current Year Ended December 31
Sales
 
$ 622,500
Cost of goods sold
 
293,000
Gross profit
 
329,500
Operating expenses (excluding depreciation)
$ 140,400
 
Depreciation expense
28,750
169,150
Other gains (losses)
 
 
Loss on sale of equipment
 
(13,125)
Income before taxes
 
147,225
Income taxes expense
 
35,450
Net income
 
$ 111,775
  

FORTEN COMPANY
Comparative Balance Sheets
December 31
 
Current Year
Prior Year
Assets
 
 
Cash
$ 61,900
$ 81,500
Accounts receivable
77,850
58,625
Inventory
287,656
259,800
Prepaid expenses
1,290
2,055
Total current assets
428,696
401,980
Equipment
149,500
116,000
Accumulated depreciation—Equipment
(40,625)
(50,000)
Total assets
$ 537,571
$ 467,980
Liabilities and Equity
 
 
Accounts payable
$ 61,141
$ 126,675
Long-term notes payable
73,400
64,350
Total liabilities
134,541
191,025
Equity
 
 
Common stock, $5 par value
174,750
158,250
Paid-in capital in excess of par, common stock
49,500
0
Retained earnings
178,780
118,705
Total liabilities and equity
$ 537,571
$ 467,980
 
Additional Information on Current Year Transactions

a.   The loss on the cash sale of equipment was $13,125 (details in b).

b.   Sold equipment costing $70,875, with accumulated depreciation of $38,125, for $19,625 cash.

c.   Purchased equipment costing $104,375 by paying $46,000 cash and signing a long-term notes payable for the balance.

d.   Paid $49,325 cash to reduce the long-term notes payable.

e.   Issued 3,300 shares of common stock for $20 cash per share.

f.     Declared and paid cash dividends of $51,700.

Required:
1. Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.)

 

Prepare a complete statement of cash flows using a spreadsheet using the indirect method. (Enter all amounts as positive values.)

 

Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes.
 

GOLDEN CORPORATION
Comparative Balance Sheets
December 31
 
Current Year
Prior Year
Assets
 
 
Cash
$ 168,000
$ 111,400
Accounts receivable
89,000
75,000
Inventory
607,000
530,000
Total current assets
864,000
716,400
Equipment
345,700
303,000
Accumulated depreciation—Equipment
(160,000)
(106,000)
Total assets
$ 1,049,700
$ 913,400
Liabilities and Equity
 
 
Accounts payable
$ 95,000
$ 75,000
Income taxes payable
32,000
27,100
Total current liabilities
127,000
102,100
Equity
 
 
Common stock, $2 par value
596,800
572,000
Paid-in capital in excess of par value, common stock
203,200
166,000
Retained earnings
122,700
73,300
Total liabilities and equity
$ 1,049,700
$ 913,400
  

GOLDEN CORPORATION
Income Statement
For Current Year Ended December 31
Sales
$ 1,812,000
Cost of goods sold
1,090,000
Gross profit
722,000
Operating expenses (excluding depreciation)
498,000
Depreciation expense
54,000
Income before taxes
170,000
Income taxes expense
27,600
Net income
$ 142,400
 
Additional Information on Current Year Transactions

a.   Purchased equipment for $42,700 cash.

b.   Issued 12,400 shares of common stock for $5 cash per share.

c.   Declared and paid $93,000 in cash dividends.

Required:
Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.)

 

Prepare a complete statement of cash flows using a spreadsheet under the indirect method. (Enter all amounts as positive values.)