Corporate Financial Accounting
14th Edition
ISBN: 9781305653535
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 13, Problem 13.5BPR
Statement of
The comparative
| Dec. 31, 20Y9 | Dec. 31, 20Y8 | |||
| Assets | ||||
| Cash | $ 70,720 | $ 47,940 | ||
| 207,230 | 188,190 | |||
| Inventories | 298,520 | 289,850 | ||
| Investments | 0 | 102,000 | ||
| Land | 295,800 | 0 | ||
| Equipment | 438,600 | 358,020 | ||
| Accumulated |
(99,110) | (84,320) | ||
| Total assets | $ 1,211,760 | $ 901,680 | ||
| Liabilities and |
||||
| Accounts payable (merchandise creditors).................. | $ 205,700 | $ 194,140 | ||
| Accrued expenses payable (operating expenses) | 30,600 | 26,860 | ||
| Dividends payable | 25,500 | 20,400 | ||
| Common stock. $1 par | 202,000 | 102,000 | ||
| Paid-in capital: Excess of issue price over par—common stock | 354,000 | 204,000 | ||
| 393,960 | 354,280 | |||
| Total liabilities and stockholders' equity | $ 1,211,760 | $ | 901,680 | |
| The income statement for the year ended December 31,20Y9, is as fallow s: | ||||
| Sales | $2,023,898 | |||
| Cost of goods sold | 1,245,476 | |||
| Gross profit | $ 778,422 | |||
| Operating expenses: | ||||
| Depreciation expense | $ 14,790 | |||
| Other operating expenses | 517,299 | |||
| Total operating expenses | 532,089 | |||
| Operating income | $ 246,333 | |||
| Other expenses: | ||||
| Loss on sale of investments | (10,200) | |||
| Income before income tax | $ 236,133 | |||
| Income tax expense | 94,453 | |||
| Net income | $ 141,680 | |||
Additional data obtained from an examination of the- accounts in the ledger for 20Y9 are as follows:
- A. Equipment and land were acquired for cash.
- B. There were no disposals of equipment during the year.
- C. The investments were sold for $91,800 cash.
- D. The common stock was issued for cash.
- E. There was a $ 102,000 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.
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Chapter 13 Solutions
Corporate Financial Accounting
Ch. 13 - What is the principal disadvantage of the direct...Ch. 13 - What are the major advantages of the indirect...Ch. 13 - A corporation issued 2,000,000 of common stock in...Ch. 13 - A retail business, using the accrual method of...Ch. 13 - If salaries payable was 100,000 at the beginning...Ch. 13 - Prob. 6DQCh. 13 - A corporation issued 2,000,000 of 20-year bonds...Ch. 13 - Fully depreciated equipment costing 50,000 was...Ch. 13 - Prob. 9DQCh. 13 - Name five common major classes of operating cash...
Ch. 13 - Classifying cash flows Identify whether each of...Ch. 13 - Adjustments to net incomeindirect method Ripley...Ch. 13 - Prob. 13.3BECh. 13 - Prob. 13.4BECh. 13 - Prob. 13.5BECh. 13 - Common stock transactions on the statement of cash...Ch. 13 - Appendix 2 Cash received from customersdirect...Ch. 13 - Reporting changes in equipment on statement of...Ch. 13 - Prob. 13.1EXCh. 13 - Effect of transactions on cash flows State the...Ch. 13 - Classifying cash flows Identify the type of cash...Ch. 13 - Prob. 13.4EXCh. 13 - Cash flows from operating activities indirect...Ch. 13 - Prob. 13.6EXCh. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Prob. 13.8EXCh. 13 - Prob. 13.9EXCh. 13 - Prob. 13.10EXCh. 13 - Determining cash payments to stockholders The...Ch. 13 - Prob. 13.12EXCh. 13 - Reporting land acquisition for cash and mortgage...Ch. 13 - Reporting issuance and retirement of long-term...Ch. 13 - Prob. 13.15EXCh. 13 - Prob. 13.16EXCh. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flowsindirect method List the...Ch. 13 - Prob. 13.19EXCh. 13 - Prob. 13.20EXCh. 13 - Prob. 13.21EXCh. 13 - Prob. 13.22EXCh. 13 - Statement of cash flowsindirect method The...Ch. 13 - Prob. 13.2APRCh. 13 - Prob. 13.3APRCh. 13 - Prob. 13.4APRCh. 13 - Statement of cash flows direct method applied to...Ch. 13 - Prob. 13.1BPRCh. 13 - Prob. 13.2BPRCh. 13 - Prob. 13.3BPRCh. 13 - Prob. 13.4BPRCh. 13 - Statement of cash flowsdirect method applied to PR...Ch. 13 - Prob. 13.1ADMCh. 13 - Prob. 13.2ADMCh. 13 - Prob. 13.3ADMCh. 13 - Priceline: Free cash flow Priceline Group, Inc. is...Ch. 13 - Ethics in Action Head Donuts Inc. is a retailer of...Ch. 13 - Prob. 13.3TIF
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