Horngren's Financial & Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780133866292
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 14, Problem 14.32AP
1.
To determine
Statement of
The purpose of the statement of cash flows:
2.
To determine
To Prepare: Single step income statement of ORRC for the year ended December 31, 2016 (using single-step format).
3.
To determine
To Prepare: The
4.
To determine
To Prepare: Statement of cash flows under indirect method.
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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…
Preparing the statement of cash flows—direct methodDiversion Rare Coins (DRC) was formed on January 1, 2018. Additional data for the year follow:
a. On January 1, 2018, DRC issued no par common stock for $450,000.
b. Early in January, DRC made the following cash payments:
For store fixtures, $46,000
For merchandise inventory, $310,000
For rent expense on a score building, $18,000
c. Later in the year, DRC purchased merchandise inventory on account for $238,000. Before year-end, DRC paid $138,000 of this accounts payable.
d. During 2018, DRC sold 2,700 units of merchandise inventory for $400 each. Before year-end, the company collected 85% of this amount. Cost of goods sold or the year was $340,000, and ending merchandise inventory totaled $208,000.
e. The store employs three people. The combined annual payroll is $97,000, of which DRC still owes $6,000 at year-end.
f. Ac the end of the year, DRC paid income tax of $18,000. There was no income taxes payable.
g. Late in 2018, DRC paid…
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:
a. On January 1, 2018, CRC issued no par common stock for $525,000.
b. 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
c. Later in the year, CRC purchased merchandise inventory on account for $243,000. Before year-end, CRC paid $153,000 of this accounts payable.
d. During 2018, CRC sold 2,800 units of merchandise inventory for $325 each. Before year-end, the company collected 95% of this amount. Cost of goods sold for the year was $290,000, and ending merchandise inventory totaled $193,000.
e. The store employs three people. The combined annual payroll is $82,000, of which CRC still owes $5„000 at year-end.
f. At the end of the year, CRC paid income tax of $17,000. There was no income taxes…
Chapter 14 Solutions
Horngren's Financial & Managerial Accounting (5th Edition)
Ch. 14 - The purposes of the statement of cash flows are to...Ch. 14 - The main categories of cash flow activities are a....Ch. 14 - Operating activities are most closely related to...Ch. 14 - Which item does not appear on a statement of cash...Ch. 14 - Leather Shop earned net income of 57,000 after...Ch. 14 - The Plant Assets account and Accumulated...Ch. 14 - Mountain Water Corp. issued common stock of 28,000...Ch. 14 - Prob. 8QCCh. 14 - Prob. 9AQCCh. 14 - If accrued liabilities increased during the year,...
Ch. 14 - Prob. 1RQCh. 14 - How does the statement of cash flows help users of...Ch. 14 - Describe the three basic types of cash flow...Ch. 14 - What types of transactions are reported in the...Ch. 14 - Prob. 5RQCh. 14 - Prob. 6RQCh. 14 - Explain why depreciation expense, depletion...Ch. 14 - Prob. 8RQCh. 14 - If current assets other than cash increase, what...Ch. 14 - If current liabilities increase, what is the...Ch. 14 - Prob. 11RQCh. 14 - Prob. 12RQCh. 14 - Prob. 13RQCh. 14 - Prob. 14RQCh. 14 - Prob. 15ARQCh. 14 - Prob. 16BRQCh. 14 - Describing the purposes of the statement of cash...Ch. 14 - Prob. 14.2SECh. 14 - Classifying items on the indirect statement of...Ch. 14 - Computing cash flows from operating...Ch. 14 - Prob. 14.5SECh. 14 - Prob. 14.6SECh. 14 - Prob. 14.7SECh. 14 - Prob. 14.8SECh. 14 - Prob. 14.9SECh. 14 - Prob. 14.10SECh. 14 - Preparing a statement of cash flows using the...Ch. 14 - Prob. 14.12SECh. 14 - Preparing the direct method statement of cash...Ch. 14 - Prob. 14.14SECh. 14 - Prob. 14.15SECh. 14 - Classifying cash flow items Consider the following...Ch. 14 - Prob. 14.17ECh. 14 - Prob. 14.18ECh. 14 - Prob. 14.19ECh. 14 - Prob. 14.20ECh. 14 - Prob. 14.21ECh. 14 - Prob. 14.22ECh. 14 - Prob. 14.23ECh. 14 - Prob. 14.24ECh. 14 - Prob. 14.25ECh. 14 - Prob. 14.26ECh. 14 - Prob. 14.27ECh. 14 - Prob. 14.28ECh. 14 - Prob. 14.29ECh. 14 - Prob. 14.30ECh. 14 - Using a spreadsheet to prepare the statement of...Ch. 14 - Prob. 14.32APCh. 14 - Prob. 14.33APCh. 14 - Prob. 14.34APCh. 14 - Prob. 14.35APCh. 14 - Preparing the statement of cash flows----direct...Ch. 14 - Prob. 14.37APCh. 14 - Prob. 14.38APCh. 14 - Prob. 14.39BPCh. 14 - Prob. 14.40BPCh. 14 - Prob. 14.41BPCh. 14 - Prob. 14.42BPCh. 14 - Prob. 14.43BPCh. 14 - Prob. 14.44BPCh. 14 - Using a spreadsheet to prepare the statement of...Ch. 14 - Prob. 14.46CPCh. 14 - Prob. 14.1CTDCCh. 14 - Moss Exports is having a bad year. Net income is...Ch. 14 - Details about a company's cash flows appear in a...
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