Financial Accounting
9th Edition
ISBN: 9781259222139
Author: Robert Libby, Patricia Libby, Frank Hodge Ch
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 12.4CP
To determine
Prepare the statement of
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Required information
Skip to question
[The following information applies to the questions displayed below.]
Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:
Ending Balance
Beginning Balance
Cash and cash equivalents
$
102,000
$
122,400
Accounts receivable
81,700
88,000
Inventory
109,700
100,000
Total current assets
293,400
310,400
Property, plant, and equipment
291,000
280,000
Less accumulated depreciation
97,000
70,000
Net property, plant, and equipment
194,000
210,000
Total assets
$
487,400
$
520,400
Accounts payable
$
64,000
$
113,700
Income taxes payable
49,700
65,700
Bonds payable
120,000
100,000
Common stock
140,000
120,000
Retained earnings
113,700
121,000
Total liabilities and stockholders’ equity
$
487,400
$
520,400…
Required information
Skip to question
[The following information applies to the questions displayed below.]
Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:
Ending Balance
Beginning Balance
Cash and cash equivalents
$
102,000
$
122,400
Accounts receivable
81,700
88,000
Inventory
109,700
100,000
Total current assets
293,400
310,400
Property, plant, and equipment
291,000
280,000
Less accumulated depreciation
97,000
70,000
Net property, plant, and equipment
194,000
210,000
Total assets
$
487,400
$
520,400
Accounts payable
$
64,000
$
113,700
Income taxes payable
49,700
65,700
Bonds payable
120,000
100,000
Common stock
140,000
120,000
Retained earnings
113,700
121,000
Total liabilities and stockholders’ equity
$
487,400
$
520,400…
Required information
Skip to question
[The following information applies to the questions displayed below.]
Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:
Ending Balance
Beginning Balance
Cash and cash equivalents
$
102,000
$
122,400
Accounts receivable
81,700
88,000
Inventory
109,700
100,000
Total current assets
293,400
310,400
Property, plant, and equipment
291,000
280,000
Less accumulated depreciation
97,000
70,000
Net property, plant, and equipment
194,000
210,000
Total assets
$
487,400
$
520,400
Accounts payable
$
64,000
$
113,700
Income taxes payable
49,700
65,700
Bonds payable
120,000
100,000
Common stock
140,000
120,000
Retained earnings
113,700
121,000
Total liabilities and stockholders’ equity
$
487,400
$
520,400…
Chapter 12 Solutions
Financial Accounting
Ch. 12 - Prob. 1QCh. 12 - Prob. 2QCh. 12 - Prob. 3QCh. 12 - What are the major categories of business...Ch. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - Prob. 8QCh. 12 - Compare the two methods of reporting cash flows...Ch. 12 - Prob. 10Q
Ch. 12 - Prob. 11QCh. 12 - What are noncash investing and financing...Ch. 12 - Prob. 13QCh. 12 - Prob. 1MCQCh. 12 - Prob. 2MCQCh. 12 - Prob. 3MCQCh. 12 - Prob. 4MCQCh. 12 - Prob. 5MCQCh. 12 - Prob. 6MCQCh. 12 - Prob. 7MCQCh. 12 - Prob. 8MCQCh. 12 - Prob. 9MCQCh. 12 - Prob. 10MCQCh. 12 - Prob. 12.1MECh. 12 - Determining the Effects of Account Changes on Cash...Ch. 12 - Prob. 12.3MECh. 12 - Prob. 12.4MECh. 12 - Prob. 12.5MECh. 12 - Prob. 12.6MECh. 12 - Prob. 12.7MECh. 12 - Prob. 12.1ECh. 12 - Prob. 12.2ECh. 12 - Prob. 12.3ECh. 12 - Prob. 12.4ECh. 12 - Prob. 12.5ECh. 12 - Prob. 12.6ECh. 12 - Prob. 12.7ECh. 12 - Reporting and Interpreting Cash Flows from...Ch. 12 - Prob. 12.9ECh. 12 - Prob. 12.10ECh. 12 - Prob. 12.11ECh. 12 - Inferring Balance Sheet Changes from the Cash Flow...Ch. 12 - (Chapter Supplement B) Computing and Reporting...Ch. 12 - During the period, Sanchez Company sold some...Ch. 12 - Prob. 12.15ECh. 12 - Prob. 12.16ECh. 12 - Prob. 12.17ECh. 12 - Prob. 12.18ECh. 12 - Prob. 12.19ECh. 12 - Prob. 12.20ECh. 12 - Prob. 12.21ECh. 12 - (Chapter Supplement A) Reporting and Interpreting...Ch. 12 - Prob. 12.23ECh. 12 - Prob. 12.24ECh. 12 - Prob. 12.1PCh. 12 - Prob. 12.2PCh. 12 - Prob. 12.3PCh. 12 - Prob. 12.4PCh. 12 - Prob. 12.5PCh. 12 - (Chapter Supplement C) Preparing a Statement of...Ch. 12 - Prob. 12.1APCh. 12 - Prob. 12.2APCh. 12 - Prob. 12.3APCh. 12 - Prob. 12.1CONCh. 12 - Prob. 12.1CPCh. 12 - Prob. 12.2CPCh. 12 - Prob. 12.3CPCh. 12 - Prob. 12.4CPCh. 12 - Prob. 12.5CPCh. 12 - Prob. 12.6CP
Knowledge Booster
Similar questions
- ccClassify each cash transaction between Operating (O), Investing (I), or Financing (F) activities 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 $4,000arrow_forwardSubject: acountingarrow_forwardVishuarrow_forward
- How does Accounts Payable impact Declan's Designs' 2022 Statement of Cash Flows?arrow_forwardDetermining Selected Amounts for Cash Flows from Operating Activities-Direct Method Selected data taken from the accounting records of Ginis Inc. for the current year ended December 31 are as follows: Balance, December 31 Balance, January 1 Accrued expenses payable (operating expenses) $6,360 $6,950 Accounts payable (merchandise creditors) 38,680 42,690 Inventories 72,600 78,910 During the current year, the cost of merchandise sold was $420,000, and the operating expenses other than depreciation were $85,000. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows. a. Determine the amount reported on the statement of cash flows for cash payments for merchandise. b. Determine the amount reported on the statement of cash flows for cash payments for operating expenses. %24arrow_forwardHow does Accounts Receivable impact Declan's Designs 2022 Statement of Cash Flows?arrow_forward
- Identifying the purpose and preparing the statement of cash flows — indirect method Classic Rare Coins (CRC) was formed on January 1, 2018. Additional data for the year follow: On January 1, 2018, CRC issued no-par common stock for $525,000. Early in January, CRC made the Following cash payments: For store fixtures, $51,000 For merchandise inventory, $240,000 For rent expense on a store building, $18,000 Later in the year, CRC purchased merchandise inventory on account for $243,000. Before year-end, CRC paid $153,000 of this accounts payable. During 2018, CRC sold 2,800 units of merchandise inventory for $325 each. Before year-end, the company collected 95% of this amount. The cost of goods sold for the year was $290,000, and the ending merchandise inventory totaled $193,000. The store employs three people. The combined annual payroll is $82,000, of which CRC still owes $5„000 at year-end. At the end of the year, CRC paid an income tax of $17,000. There were no income taxes…arrow_forwardComputing operating activities cash flow—indirect method The accounting records of CD Sales, Inc. include the following accounts: Compute CD’s net cash provided by (used for) operating activities during July 2018. Use the indirect method.arrow_forwardDetermining Selected Amounts for Cash Flows from Operating Activities-Direct Method Selected data taken from the accounting records of Ginis Inc. for the current year ended December 31 are as follows: Accrued expenses payable (operating expenses) Accounts payable (merchandise creditors) Inventories Balance, December 31 $5,040 36,670 67,570 Balance, January 1 $5,510 40,470 73,450 During the current year, the cost of merchandise sold was $372,200, and the operating expenses other than depreciation were $69,800. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows. a. Determine the amount reported on the statement of cash flows for cash payments for merchandise. b. Determine the amount reported on the statement of cash flows for cash payments for operating expenses.arrow_forward
- Subject: acountingarrow_forwardFinancial condition Tidewater Inc., a retailer, provided the following financial information for its most recent fiscal year: The companys Cash flows from operating activities section is as follows: An examination of the financial statements revealed the following additional information: Revenues increased during the year as a result of an aggressive marketing campaign aimed at increasing the number of new Tidewater Card credit card customers. This is the companys branded credit card, which can only be used at Tidewater stores. The credit card balances are accounts receivable on Tidewaters balance sheet. Some suppliers have made their merchandise available at a deep discount. As a result, the company purchased large quantities of these goods in an attempt to improve the companys profitability. In recent years, the company has struggled to pay its accounts payable on time. The company has improved on this during the past year and is nearly caught up on overdue payables balances. The company reported net losses in each of the two prior years. Write a brief memo to your instructor evaluating the financial condition of Tidewater Inc.arrow_forwardThe financial statements for Romeo and Company follow. Assume that the additional investment and the withdrawals were in the form of cash. Required Prepare a statement of cash flows for the year ended December 31, 2018. Check Figure Net cash flows from operating activities, 172,000arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning