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Bundle: Accounting, 27th + Working Papers, Chapters 1-17
27th Edition
ISBN: 9781337759892
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 16, Problem 16.4BPR
Statement of
The comparative
Dec 31, 20Y4 | Dec. 31,20Y3 | |
Assets | ||
Cash.................................. | $ 661,920 | $ 683,100 |
992,640 0 | 914,400 | |
Inventories............................................... | 1,394,40 | 1,363,800 |
Investments.............................................. | 0 | 432,000 |
Land..................................................... | 960,000 | 0 |
Equipment................................................ | 1,224,000 | 984,000 |
Accumulated |
(481,500) | (368,400) |
Total assets............................................ | $4,751,460 | $4,008,900 |
Liabilities and |
||
Accounts payable......................................... | $1,080,000 | $ 966,600 |
Accrued expenses payable................................ | 67,800 | 79,200 |
Dividends payable.................................. | 100,800 | 91,200 |
Common stock. $S par .................................... | 130,000 | 30,000 |
Paid in capital: Excess of issue price over par—common stock...... | 950,000 | 450,000 |
2,422,860 | 2,391,900 | |
Total liabilities and stockholders' equity.................. | $4,751,460 | $4,008,900 |
The income statement for the year ended December 31, 20Y4, is as follows:
Sales.......................................... | $4,512,000 | |
Cost of merchandise sold....................... | 2,352,000 | |
Gross profit.................................... | $2,160,000 | |
Operating expenses: | ||
Depreciation expense....................... | $ 113,100 | |
Other operating expenses................... | 1,344,840 | |
Total operating expenses................. | 1,457,940 | |
Operating income.............................. | $ 702,060 | |
Other income: | ||
Gain on sale of investments.................. | 156,000 | |
Income before income tax...................... | $ 858,060 | |
Income tax expense............................ | 299,100 | |
Net income.................................... | $ 558,960 |
Additional data obtained from an examination of the accounts in the ledger for 20Y4 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 $588,000 cash.
d. The common stock was issued for cash.
e. There was a $528,000 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.
Expert Solution & Answer
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Chapter 16 Solutions
Bundle: Accounting, 27th + Working Papers, Chapters 1-17
Ch. 16 - Prob. 1DQCh. 16 - Prob. 2DQCh. 16 - A corporation issued 2,000,000 of common stock in...Ch. 16 - A retail business, using the accrual method of...Ch. 16 - Prob. 5DQCh. 16 - A long-term investment in bonds with a cost of...Ch. 16 - A corporation issued 2,000,000 of 20-year bonds...Ch. 16 - Fully depreciated equipment costing 50,000 is...Ch. 16 - Prob. 9DQCh. 16 - Name five common major classes of operating cash...
Ch. 16 - Prob. 16.1APECh. 16 - Prob. 16.1BPECh. 16 - Adjustments to net incomeindirect method Ripley...Ch. 16 - Prob. 16.2BPECh. 16 - Changes in current operating assets and...Ch. 16 - Changes in current operating assets and...Ch. 16 - Prob. 16.4APECh. 16 - Prob. 16.4BPECh. 16 - Land transactions on the statement of cash flows...Ch. 16 - Land transactions on the statement of cash flows...Ch. 16 - Prob. 16.6APECh. 16 - Prob. 16.6BPECh. 16 - Cash payments for merchandisedirect method The...Ch. 16 - Cash payments for merchandisedirect method The...Ch. 16 - Prob. 16.8APECh. 16 - Prob. 16.8BPECh. 16 - Prob. 16.1EXCh. 16 - Effect of transactions on cash flows State the...Ch. 16 - Classifying cash flows Identify the type of cash...Ch. 16 - Cash flows from operating activitiesindirect...Ch. 16 - Cash flows from operating activitiesindirect...Ch. 16 - Prob. 16.6EXCh. 16 - Prob. 16.7EXCh. 16 - Determining cash payments to stockholders The...Ch. 16 - Reporting changes in equipment on statement of...Ch. 16 - Prob. 16.10EXCh. 16 - Reporting land transactions on statement of cash...Ch. 16 - Prob. 16.12EXCh. 16 - Reporting land acquisition for cash and mortgage...Ch. 16 - Reporting issuance and retirement of longterm debt...Ch. 16 - Prob. 16.15EXCh. 16 - Prob. 16.16EXCh. 16 - Prob. 16.17EXCh. 16 - Statement of cash flowsindirect method The...Ch. 16 - Prob. 16.19EXCh. 16 - Prob. 16.20EXCh. 16 - Determining selected amounts for cash flows from...Ch. 16 - Prob. 16.22EXCh. 16 - Cash flows from operating activitiesdirect method....Ch. 16 - Prob. 16.24EXCh. 16 - Free cash flow The financial statement for Nike,...Ch. 16 - Free cash flow Lovato Motors Inc. has cash flows...Ch. 16 - Statement of cash flowsindirect method The...Ch. 16 - Prob. 16.2APRCh. 16 - Statement of cash flowsindirect method The...Ch. 16 - Prob. 16.4APRCh. 16 - Prob. 16.5APRCh. 16 - Prob. 16.1BPRCh. 16 - Statement of cash flowsindirect method The...Ch. 16 - Statement of cash flowsindirect method The...Ch. 16 - Statement of cash flowsdirect method The...Ch. 16 - Statement of cash flowsdirect method applied to PR...Ch. 16 - Ethics in Action Lucas Hunter, president of...Ch. 16 - Prob. 16.3CPCh. 16 - Using the statement of cash flows You are...Ch. 16 - Dillip Lachgar is the president and majority...
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