The trial balance of Pacilio Security Services, Incorporated as of January 1, Year 9, had the following normal balances.Cash$ 93,380Petty cash100Accounts receivableAllowance for doubtful accountsSuppliesPrepaid rentMerchandise inventory (23 @ $280)EquipmentVanAccumulated depreciationSalaries payableCommon stockRetained earnings21,3902,4851803,0006,4409,00027,00014,9001,50050,00091,605During Year 9, Pacilio Security Services experienced the following transactions:1. Paid the salaries payable from Year 8.2. Paid $9,000 on May 2, Year 9, for one year's office rent in advance.3. Purchased $425 of supplies on account.4. Purchased 145 alarm systems at a cost of $290 each. Paid cash for the purchase.5. After numerous attempts to collect from customers, wrote off $2,060 of uncollectible accounts receivable.6. Sold 130 alarm systems for $580 each plus sales tax of 5 percent. All sales were on account.7. Record cost of good sold for the sales transaction mentioned in previous transaction (number 6). Be sure to computecost of goods sold using the FIFO cost flow method.8. Billed $107,000 of monitoring services for the year. Credit card sales amounted to $42,000, and the credit cardcompany charged a 4 percent fee. The remaining $65,000 were sales on account. Sales tax is not charged on thisservice.9. Replenished the petty cash fund on June 30. The fund had $5 cash and has receipts of $60 for yard mowing, $15 foroffice supplies expense, and $17 for miscellaneous expenses.10. Collected the amount due from the credit card company.11. Paid the sales tax collected on $69,600 of the alarm sales.12. Paid installers and other employees a total of $65,000 for salaries for the year. Assume the Social Security tax rate is6 percent and the Medicare tax rate is 1.5 percent. Federal income taxes withheld amounted to $7,500. Cash waspaid for the net amount of salaries due.13. Pacilio now offers a one-year warranty on its alarm systems. Paid $1,950 in warranty repairs during the year.14. On September 1, borrowed $12,000 from State Bank. The note had an 8 percent interest rate and a one-year term tomaturity.15. Collected $136,100 of accounts receivable during the year.16. Paid $15,000 of advertising expense during the year.17. Paid $7,200 of utilities expense for the year.18. Paid the payroll taxes, both the amounts withheld from the salaries plus the employer share of Social Security taxand Medicare tax, on $60,000 of the salaries plus $7,000 of the federal income tax that was withheld.(Unemployment taxes were not paid at this time.)19. Paid the accounts payable.20. Paid a dividend of $10,000 to the shareholders.Adjustments21. There was $165 of supplies on hand at the end of the year.22. Recognized the expired rent for the office building for the year.23. Recognized uncollectible accounts expense for the year using the allowance method. The company revised itsestimate of uncollectible accounts based on prior years' experience. This year, Pacilio estimates that 2.75 percent ofsales on account will not be collected.24. Recognized depreciation expense on the equipment and the van. The equipment has a five-year life and a $2,000salvage value. The van has a four-year life and a $6,000 salvage value. The company uses double-declining-balancefor the van and straight-line for the equipment. (A full year's depreciation was taken in Year 8, the year ofacquisition.)25. The alarm systems sold in transaction 6 were covered with a one-year warranty. Pacilio estimated that the warrantycost would be 3 percent of alarm sales.26. Recognized the accrued interest on the note payable at December 31, Year 9.27. The une ployment tax on salaries has not been paid. Recorded the accrued unemployme tax on the salaries forthe year. The unemployment tax rate is 4.5 percent. ($14,000 of salaries is subject to this tax.)28. Recognized the employer Social Security and Medicare payroll tax that has not been paid on $5,000 of salariesexpense. Pacilio Security Services, IncorporatedStatement of Cash FlowsFor the Year Ended December 31, Year 9Cash flows from operating activities:Net cash flow from operatingactivitiesCash flows from investing activities:Net cash flows from investingactivitiesCash flows from financing activities:Net cash flow from financingactivitiesEnding cash balance$$000

Statement of cash flows is one of the useful financial statement of business. It shows all cash…

Answered: Pacilio Security Services, Incorporated…

Pacilio Security Services, Incorporated Statement of Cash Flows For the Year Ended December 31, Year 9 Cash flows from operating activities: Net cash flow from operating Lactivities $ 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $127,200. Depreciation recorded on store equipment for the year amounted to $21,000. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $50,630 $46,070 Accounts receivable (net) 36,300 34,050 Inventories 49,570 51,830 Prepaid expenses 5,570 4,380 Accounts payable (merchandise creditors) 47,440 43,580 Wages payable 25,920 28,470 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: Net income $fill in the blank ec5d5a033f89031_2 Adjustments to…
Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $137,500. Depreciation recorded on store equipment for the year amounted to $22,700. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Endof Year Beginningof Year Cash $53,350 $48,550 Accounts receivable (net) 38,250 35,880 Merchandise inventory 52,230 54,620 Prepaid expenses 5,870 4,610 Accounts payable (merchandise creditors) 49,990 45,930 Wages payable 27,320 30,000 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
The following information is available from the current period financial statements: Net income $ 120,206 Depreciation expense $31,199 Increase in accounts receivable $16,040 Decrease in accounts payable $24,041 The net cash flow from operating activities using the indirect method is a.$97,008 b.$191,486 c.$111,324 d.$72,967
Free cash flow Dillin Inc. reported the following on the company's statement of cash flows in 20Y2 and 20Y1: 20Y2 20Y1 Net cash flow from operating activities $476,200 $456,200 Net cash flow used for investing activities (429,000) (379,000) Net cash flow used for financing activities (41,000) (57,000) Eighty percent of the net cash flow used for investing activities was used for the purchase of property, plant, and equipment. a. Determine Dillin's free cash flow for both years. 20Y2 20Y1 Free cash flow $ b. Has Dillin's free cash flow improved or declined from 20Y1 to 20Y2?
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $154,100. Depreciation recorded on store equipment for the year amounted to $25,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $58,560 $53,290 Accounts receivable (net) 41,990 39,380 Inventories 57,330 59,950 Prepaid expenses 6,440 5,060 Accounts payable (merchandise creditors) 54,870 50,410 Wages payable 29,980 32,930 a. Prepare the “Cash flows from operating activities” section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow…
Cash Flows from Operating Activities—Indirect Method The income statement disclosed the following items for the year: Depreciation expense $53,700 Gain on disposal of equipment 31,310 Net income 391,700 The changes in the current asset and liability accounts for the year are as follows: Increase(Decrease) Accounts receivable $8,360 Inventory (4,760) Prepaid insurance (1,780) Accounts payable (5,670) Income taxes payable 1,780 Dividends payable 1,250 a. Prepare the “Cash flows from operating activities” section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on disposal of equipment Changes in current operating assets and…
Question Content Area The following information is available from the current period financial statements: Net income $102,978 Depreciation expense 26,870 Increase in accounts receivable 15,293 Decrease in accounts payable (29,031) The net cash flows from operating activities using the indirect method is
Free Cash Flow Kat Co. reports the following financial data for the current year: Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Cash disbursed for capital expenditures Compute Kat's free cash flow. Free cash flow S 17175 x Check $21,500 (10,555) 4,250 (4,325)
The following information is available from the current period financial statements: Net income $135,135 Depreciation expense $31,170 Increase in accounts receivable $16,694 Decrease in accounts payable $23,736 The net cash flow from operating activities using the indirect method is?
5 Required information Exercise 12-10A (Algo) Determining cash flows from investing activities LO 12-3 [The following information applies to the questions displayed below.] The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end balance sheets: Account Title Investment securities Machinery Land Year 2 $ 103,400 521,300 145, 100 Year 1 $ 114,400 425, 100 91,800 Other information drawn from the accounting records: 1. Delsey incurred a $1,330 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $4,130 (cost of $25,010 minus accumulated depreciation of $20,880) was sold. The income statement showed a gain on the sale of machinery of $4,980, 3. Delsey did not sell land during the year.