10. Preparing a funds statement; cash flow from operations. You have the following information about the financial affairs of the XYZ Company: 1. Balance sheets: Current Assets: Cash..... Accounts receivable Inventories.. Total Current Assets Beginning of Year $ 2 235 End of Year $ 1 4 6 $10 Land, plant, and equipment, cost. $20 $11 $29 Less: Accum. depreciation Total Assets... Current Liabilities: Accounts payable Taxes payable.... Notes payable.. 8 12 $22 $ 4 1 2 ; 8「: སནྡྷ། 20| $31 $ 3 Total Current Liabilities $ 5 Bonds payable Deferred taxes Total Liabilities Common stock..... Additional paid-in capital Retained earnings.... Total Owners' Equity... Total Liabilities and Owners' Equity... 2. Income statement: Sales Revenues... Operating expenses: Cost of goods sold Depreciation Other ...... Operating Income Gain on sale of equipment. Income Before Taxes Income tax expense Net Income 3. Footnotes: Beginning of Year End of Year 5 3 4 $ 8 $16 $ 4 $ 5 2 8 6 14 15 $22 $31 $48 $25 4 15 44 $ 5 (1) Land purchased during the year in exchange for bonds, $5. (2) Cash dividends declared and paid, $4. (3) Stock dividends, capitalized at $3. (4) Original cost of plant and equipment retired and sold during the year, $7. a. Prepare a statement of changes in financial position. b. Was the amount of cash flow from operations greater or less than the amount of funds provided by operations? Explain briefly.
10. Preparing a funds statement; cash flow from operations. You have the following information about the financial affairs of the XYZ Company: 1. Balance sheets: Current Assets: Cash..... Accounts receivable Inventories.. Total Current Assets Beginning of Year $ 2 235 End of Year $ 1 4 6 $10 Land, plant, and equipment, cost. $20 $11 $29 Less: Accum. depreciation Total Assets... Current Liabilities: Accounts payable Taxes payable.... Notes payable.. 8 12 $22 $ 4 1 2 ; 8「: སནྡྷ། 20| $31 $ 3 Total Current Liabilities $ 5 Bonds payable Deferred taxes Total Liabilities Common stock..... Additional paid-in capital Retained earnings.... Total Owners' Equity... Total Liabilities and Owners' Equity... 2. Income statement: Sales Revenues... Operating expenses: Cost of goods sold Depreciation Other ...... Operating Income Gain on sale of equipment. Income Before Taxes Income tax expense Net Income 3. Footnotes: Beginning of Year End of Year 5 3 4 $ 8 $16 $ 4 $ 5 2 8 6 14 15 $22 $31 $48 $25 4 15 44 $ 5 (1) Land purchased during the year in exchange for bonds, $5. (2) Cash dividends declared and paid, $4. (3) Stock dividends, capitalized at $3. (4) Original cost of plant and equipment retired and sold during the year, $7. a. Prepare a statement of changes in financial position. b. Was the amount of cash flow from operations greater or less than the amount of funds provided by operations? Explain briefly.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:10. Preparing a funds statement; cash flow from operations. You have
the following information about the financial affairs of the XYZ Company:
1. Balance sheets:
Current Assets:
Cash.....
Accounts receivable
Inventories..
Total Current Assets
Beginning
of Year
$ 2
235
End
of Year
$ 1
4
6
$10
Land, plant, and equipment, cost.
$20
$11
$29
Less: Accum. depreciation
Total Assets...
Current Liabilities:
Accounts payable
Taxes payable....
Notes payable..
8
12
$22
$ 4
1
2
; 8「: སནྡྷ།
20|
$31
$ 3
Total Current Liabilities
$ 5
Transcribed Image Text:Bonds payable
Deferred taxes
Total Liabilities
Common stock.....
Additional paid-in capital
Retained earnings....
Total Owners' Equity...
Total Liabilities and Owners'
Equity...
2. Income statement:
Sales Revenues...
Operating expenses:
Cost of goods sold
Depreciation
Other ......
Operating Income
Gain on sale of equipment.
Income Before Taxes
Income tax expense
Net Income
3. Footnotes:
Beginning
of Year
End
of Year
5
3
4
$ 8
$16
$ 4
$ 5
2
8
6
14
15
$22
$31
$48
$25
4
15
44
$ 5
(1) Land purchased during the year in exchange for bonds, $5.
(2) Cash dividends declared and paid, $4.
(3) Stock dividends, capitalized at $3.
(4) Original cost of plant and equipment retired and sold during the
year, $7.
a. Prepare a statement of changes in financial position.
b. Was the amount of cash flow from operations greater or less than the
amount of funds provided by operations? Explain briefly.
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