Homework Help is Here – Start Your Trial Now!
Business
Accounting
Using the following information and the additional information below, use the form below to complete the direct statement of cash flows. Data: Assets Dec. 31, 2016 Dec. 31, 2015 70,720 $ 207,230 Cash 47,940 Accounts receivable 188,190 Inventories 298,520 289,850 Investments 102,000 Land 295,800 Equipment Accumulated deprecation - equipment 438,600 358,200 (84,320) 901,860 (99,110) Total assets $ 1,211,760 $ Liabilities and Stockholders' Equity Accounts Payable (merchandise creditors 205,700 194,140 Accrued expenses payable (operating expenses) 30,600 26,860 Dividends 25,500 20,400 Common stock, $4 par 202,000 102,000 Paid-in-capital: Excess of issue price over par- co 354,000 204,000 Retained earnings 393,960 354,280 Total liabilities and stockholders' equity 1,211,760 $ 901,680 Sales $ 2,023,898 Cost of goods sold Gross profit Operating expenses: Depreciation expense Other operating expenses 1,245,476 778,422 14,790 517,299 Total operating expenses 532,089 Operating income Other expenses: 246,333 Loss on sale of investments (10,200) Income before income tax 236,133 Income tax expenses 94,453 Net income 141,680 a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. d. The investments were sold for $91,800 cash. The common stock was issued for cash. e. There was a $102,000 debit to Retained Earnings for cash dividends declared. 24

Using the following information and the additional information below, use the form below to complete the direct statement of cash flows. Data: Assets Dec. 31, 2016 Dec. 31, 2015 70,720 $ 207,230 Cash 47,940 Accounts receivable 188,190 Inventories 298,520 289,850 Investments 102,000 Land 295,800 Equipment Accumulated deprecation - equipment 438,600 358,200 (84,320) 901,860 (99,110) Total assets $ 1,211,760 $ Liabilities and Stockholders' Equity Accounts Payable (merchandise creditors 205,700 194,140 Accrued expenses payable (operating expenses) 30,600 26,860 Dividends 25,500 20,400 Common stock, $4 par 202,000 102,000 Paid-in-capital: Excess of issue price over par- co 354,000 204,000 Retained earnings 393,960 354,280 Total liabilities and stockholders' equity 1,211,760 $ 901,680 Sales $ 2,023,898 Cost of goods sold Gross profit Operating expenses: Depreciation expense Other operating expenses 1,245,476 778,422 14,790 517,299 Total operating expenses 532,089 Operating income Other expenses: 246,333 Loss on sale of investments (10,200) Income before income tax 236,133 Income tax expenses 94,453 Net income 141,680 a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. d. The investments were sold for $91,800 cash. The common stock was issued for cash. e. There was a $102,000 debit to Retained Earnings for cash dividends declared. 24

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

How to solve using the direct method...

 

Using the following information and the additional information below, use the form below to complete the direct statement of cash flows. Data: Assets Dec. 31, 2016 Dec. 31, 2015 70,720 $ 207,230 Cash 47,940 Accounts receivable 188,190 Inventories 298,520 289,850 Investments 102,000 Land 295,800 Equipment Accumulated deprecation - equipment 438,600 358,200 (84,320) 901,860 (99,110) Total assets $ 1,211,760 $ Liabilities and Stockholders' Equity Accounts Payable (merchandise creditors 205,700 194,140 Accrued expenses payable (operating expenses) 30,600 26,860 Dividends 25,500 20,400 Common stock, $4 par 202,000 102,000 Paid-in-capital: Excess of issue price over par- co 354,000 204,000 Retained earnings 393,960 354,280 Total liabilities and stockholders' equity 1,211,760 $ 901,680
Transcribed Image Text:Using the following information and the additional information below, use the form below to complete the direct statement of cash flows. Data: Assets Dec. 31, 2016 Dec. 31, 2015 70,720 $ 207,230 Cash 47,940 Accounts receivable 188,190 Inventories 298,520 289,850 Investments 102,000 Land 295,800 Equipment Accumulated deprecation - equipment 438,600 358,200 (84,320) 901,860 (99,110) Total assets $ 1,211,760 $ Liabilities and Stockholders' Equity Accounts Payable (merchandise creditors 205,700 194,140 Accrued expenses payable (operating expenses) 30,600 26,860 Dividends 25,500 20,400 Common stock, $4 par 202,000 102,000 Paid-in-capital: Excess of issue price over par- co 354,000 204,000 Retained earnings 393,960 354,280 Total liabilities and stockholders' equity 1,211,760 $ 901,680
Sales $ 2,023,898 Cost of goods sold Gross profit Operating expenses: Depreciation expense Other operating expenses 1,245,476 778,422 14,790 517,299 Total operating expenses 532,089 Operating income Other expenses: 246,333 Loss on sale of investments (10,200) Income before income tax 236,133 Income tax expenses 94,453 Net income 141,680 a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. d. The investments were sold for $91,800 cash. The common stock was issued for cash. e. There was a $102,000 debit to Retained Earnings for cash dividends declared. 24
Transcribed Image Text:Sales $ 2,023,898 Cost of goods sold Gross profit Operating expenses: Depreciation expense Other operating expenses 1,245,476 778,422 14,790 517,299 Total operating expenses 532,089 Operating income Other expenses: 246,333 Loss on sale of investments (10,200) Income before income tax 236,133 Income tax expenses 94,453 Net income 141,680 a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. d. The investments were sold for $91,800 cash. The common stock was issued for cash. e. There was a $102,000 debit to Retained Earnings for cash dividends declared. 24
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost control
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS