Milo Clothing experienced the following events during Year 1, its first year of operation:1. Acquired $30,000 cash from the issue of common stock.2. Purchased inventory for $15,000 cash.3. Sold inventory costing $9,000 for $20,000 cash.4. Paid $1,500 for advertising expense.RequiredRecord the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investmentactivity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. (Notevery cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.)MILO CLOTHINGAssetsEffect of Events on the Financial StatementsStockholders' EquityEventCommonCash+ InventoryStockRetainedEarningsRevenueExpensesNetIncomeStatement of CashFlows1.+2.За.3b.4.Total0+00+0000

Preparation of accounting equation as follows:Resultant values:

Answered: Milo Clothing experienced the following…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter14: Statement Of Cash Flows

Section: Chapter Questions

Problem 43E

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Milo Clothing experienced the following events during Year 1, its first year of operation: 1. Acquired $18,500 cash from the issue of common stock. 2. Purchased inventory for $6,000 cash. 3. Sold inventory costing $3,600 for $6,120 cash. 4. Paid $750 for advertising expense. Required: Record the events in a horizontal financial statements model. Note: In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input. leave cells blank if there is no corresponding input needed. Event 1. 2. 3a. 3b. 4. Total Cash Assets + + Balance Sheet Inventory = MILO CLOTHING Effect of Events on the Financial Statements = Stockholders' Equity Common Stock + + Retained Earnings Income Statement Revenue - Expenses. Net Income Statement of Cash Flows
Dan Watson started a small merchandising business in Year 1. The business experienced the following events during its first year of operation. Assume that Watson uses the perpetual inventory system. Acquired $25,000 cash from the issue of common stock. Purchased inventory for $20,000 cash. Sold inventory costing $15,900 for $29,000 cash. Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. Prepare an income statement for Year 1 (use the multistep format). What is the amount of total assets at the end of the period?
Milo Clothing experienced the following events during Year 1, its first year of operation: Acquired $19,500 cash from the issue of common stock. Purchased inventory for $6,300 cash. Sold inventory costing $3,780 for $6,426 cash. Paid $600 for advertising expense. Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.)
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Dan Watson started a small merchandising business in Year 1. The business experienced the following events during its first year of operation. Assume that Watson uses the perpetual inventory system. Acquired $30,000 cash from the issue of common stock. Purchased inventory for $24,000 cash. Sold inventory costing $16,100 for $30,500 cash. Required Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. Prepare an income statement for Year 1 (use the multistep format). What is the amount of total assets at the end of the period?
Dan Watson started a small merchandising business in Year 1. The business experienced the following events during its first year of operation. Assume that Watson uses the perpetual inventory system. 1. Acquired $35,000 cash from the issue of common stock. 2. Purchased inventory for $28,000 cash. 3. Sold inventory costing $17,500 for $32,000 cash. Required a. Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. b. Prepare an income statement for Year 1 (use the multistep format). c. What is the amount of total assets at the end of the period? Complete this question by entering your answers in the tabs below. Required A Required B Required C Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment…
Blooming Flower Company was started in Year 1 when it acquired $61,400 cash from the issue of common stock. The following data summarize the company's first three years' operating activities. Assume that all transactions were cash transactions. Purchases of inventory Sales Cost of goods sold Selling and administrative expenses Income Statements Balance Sheets Assets Cash Required Prepare an income statement (use multistep format) and balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting period in the accounting equation before preparing the statements for that year.) Merchandise inventory Complete this question by entering your answers in the tabs below. Total assets Liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Year 1 $22,300 26,500 12,400 5,310 $ 60,290 9,900 Prepare a balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting…
Classify each cash transaction between Operating (O), Investing (I), or Financing (F) activities; and prepare the Statement of Cash Flow for Cougar Corp. using the following data: Cash at the beginning of the year: $650,000 Cash Receipts from: Bank (Interest on CD) $6,000 Customers Sales $872,000 Interest $33,000 Dividends $3,600 Cash payments for: Dividends $2,500 Raw Materials $ 3,800 Wages Expense $4,000 Land $10,000 Interest $4,000
Citi Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Cash dividends declared for the year Cash dividends payable at the beginning of the year Cash dividends payable at the end of the year The amount of cash paid for dividends was: Multiple Choice O $40,000. O $57,000. O $44,000. O $53,000. $36,000. $ 40,000 17,000 13,000
Rainey Enterprises loaned $45,000 to Small Company on June 1, Year 1, for one year at 7 percent interest. Required Show the effects of the following transactions in a horizontal statements model. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. (1) The loan to Small Company (2) The adjusting entry at December 31, Year 1. (3) The adjusting entry and collection of the note on June 1, Year 2.
In the chapter of Statement of Cash Flows. There is a question asks for - "Identify how each transaction would be classified for purpose of creating a statement of cash flows." The Westside Deli has engaged in several transactions during the year as follows: 1. Purchased a delivery van for $15,000 and paid cash. 2. Sold 100 shares of capital stock with a $5 par value per share for $10 per share. 3. Borrowed $15,000 from the local savings and loan institution on a long-term basis. 4. Paid dividends of $10,000 during the year. 5. Sold investments, with book value of $8,000, for $6,000. 6. Purchased short-term investments (stock in a Fortune 500 company) for $4,500. 7. Repurchased fifty shares of its own capital stock for $300. Stock is to be held for pos-sible resale. 8. Paid $5,600 of long-term debt. 9. Exchanged 100 shares of capital stock for $1,000 of long-term debt owed to First Bank. 10. Purchased vacant land for $10,000 for potential expansion two years hence.
MechTech Incorporated started the year with $120,400 cash and reported net cash provided by operating activities of $242,500, cash paid for dividends of $50,200, cash received from stock issuance of $47,000, cash paid for equipment purchases of $158,500, cash paid for intangible assets of $125,500, and cash paid on bank loan of $43,500. Required: Calculate the following: 1. Net cash provided by (used in) investing activities. 2. Net cash provided by (used in) financing activities. 3. Ending cash. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate net cash provided by (used in) investing activities. (Amounts to be deducted should be indicated with a minus sign.) Investing Activities Cash paid for equipment purchases Net cash provided by (used in) investing activities + $ Amount (158,500) (158,500)

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