1. A used machine with a purchase price of $33,533, requiring an overhaul costing $8,904, installation costs of $5,946, and special acquisition fees of $12,831, would have a cost basis of
1. A used machine with a purchase price of $33,533, requiring an overhaul costing $8,904, installation costs of $5,946, and special acquisition fees of $12,831, would have a cost basis of
| Units | Cost | |||
| October | 5 | Purchase | 1 | $5 |
| 12 | Purchase | 1 | 13 | |
| 28 | Purchase | 1 | 15 | |
| Total | 3 | $33 |
Assume one unit is sold on October 31 for $28. Determine cost of goods sold, gross profit, and ending inventory under the average cost method.
| October 31 | |
| Sales | $fill in the blank 1 |
| Cost of Goods Sold | fill in the blank 2 |
| Gross Profit | $fill in the blank 3 |
| Ending Inventory | $fill in the blank 4 |
3.
What is the total
| Common Stock | $375,000 |
| Paid-In Capital in Excess of Par | 90,000 |
| 190,000 | |
|
15,000 |
4.
The net income reported on the income statement for the current year was $210,000.
| End of Year | Beginning of Year | |
| Cash | $56,000 | $59,500 |
| 71,000 | 73,400 | |
| Inventories | 140,000 | 126,500 |
| Prepaid expenses | 7,800 | 8,400 |
| Accounts payable (merchandise creditors) | 62,600 | 66,400 |
| Salaries payable | 9,000 | 8,250 |
Required:
a. Prepare the
CHOOSE FROM FOLLOWING for cash flow...
- Decrease in inventories
- Depreciation
- Increase in prepaid expenses
- Loss on Sale of Equipment
- Net income
CHOOSE FROM FOLLOWING for adjustments to reconcile...
- Decrease in Prepaid Expenses
- Depreciation
- Increase in accounts payable
- Increase in accounts receivable
- Supplies
CHOOSE FROM FOLLOWING for changes in current...
- Decrease in accounts receivable
- Decrease in accrued expenses
- Decrease in salaries payable
- Increase in accounts receivable
- Net income
| Operating Activities Section | ||
| Cash flows from operating activities: | ||
| $fill in the blank cb510efa5043f99_2 | ||
| Adjustments to reconcile net income to net cash flow from operating activities: | ||
| fill in the blank cb510efa5043f99_4 | ||
| Changes in current operating assets and liabilities: | ||
| fill in the blank cb510efa5043f99_6 | ||
| fill in the blank cb510efa5043f99_8 | ||
| fill in the blank cb510efa5043f99_10 | ||
| fill in the blank cb510efa5043f99_12 | ||
| fill in the blank cb510efa5043f99_14 | ||
| Net cash flow from operating activities | $fill in the blank cb510efa5043f99_15 |
b. If the direct method had been used, would the net cash flow from operating activities have been the same?
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