College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Chapter 23, Problem 9SPB
To determine
Prepare a partial statement of
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Schedule for Calculation of Cash Generated From Operating Activities
Zowine Company's condensed income statement for the year ended December 31, 20-2, is shown.
Net sales
$765,000
Cost of goods sold
550,000
Gross profit
$215,000
Operating expenses
30,000
Income before taxes
$185,000
Income tax expense
65,000
Net income
$120,000
Additional information obtained from Zowine's comparative balance sheets as of December 31, 20-2 and 20-1, is shown.
20-2
20-1
Cash
$60,000
$20,000
Accounts receivable
70,000
100,000
Merchandise inventory
80,000
125,000
Accounts payable
55,000
90,000
Cash Flows from Operating Activities—Direct Method
The income statement for Rhino Company for the current year ended June 30 and balances of selected accounts at the beginning and the end of the year are as follows:
Sales
$445,500
Cost of merchandise sold
154,000
Gross profit
$291,500
Operating expenses:
Depreciation expense
$38,500
Other operating expenses
115,280
Total operating expenses
153,780
Income before income tax
$137,720
Income tax expense
39,600
Net income
$98,120
End of Year
Beginning of Year
Accounts receivable (net)
$36,300
$31,240
Inventories
92,400
80,300
Prepaid expenses
14,520
15,840
Accounts payable (merchandise creditors)
67,540
62,700
Accrued expenses payable (operating expenses)
19,140
20,900
Income tax payable
4,400
4,400
Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the direct method. Use the…
Schedule for Calculation of Cash Generated From Operating Activities
Horn Company's condensed income statement for the year ended December 31, 20-2, is shown.
Net sales
$1,220,000
Cost of goods sold
740,000
Gross profit
$480,000
Operating expenses
142,000
Operating income
$338,000
Other revenues and expenses:
Interest revenue
$420
Interest expense
(1,200)
(780)
Income before taxes
$337,220
Income tax expense
118,000
Net income
$219,220
Additional information obtained from Horn's comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, is shown.
20-2
20-1
Accounts receivable
$135,000
$122,600
Merchandise inventory
145,300
158,900
Accounts payable
45,000
87,100
Income tax payable
2,000
1,000
Supplies and prepayments
11,300
6,800
Accrued and withheld payroll taxes
2,750
3,700
Accrued interest receivable
90
210
Accrued interest payable
240
160…
Chapter 23 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 23 - True/False The purpose of the statement of cash...Ch. 23 - Investing activities are those transactions...Ch. 23 - An increase in accounts receivable is deducted...Ch. 23 - Prob. 4TFCh. 23 - Prob. 5TFCh. 23 - Prob. 1MCCh. 23 - Prob. 2MCCh. 23 - Prob. 3MCCh. 23 - Prob. 4MCCh. 23 - Prob. 5MC
Ch. 23 - Prob. 1CECh. 23 - Prob. 2CECh. 23 - Prob. 3CECh. 23 - Prob. 4CECh. 23 - Prob. 5CECh. 23 - Prob. 6CECh. 23 - Prob. 7CECh. 23 - Prob. 8CECh. 23 - Prob. 1RQCh. 23 - Prob. 2RQCh. 23 - Prob. 3RQCh. 23 - Prob. 4RQCh. 23 - Prob. 5RQCh. 23 - Prob. 6RQCh. 23 - Prob. 7RQCh. 23 - Prob. 8RQCh. 23 - Prob. 9RQCh. 23 - Prob. 10RQCh. 23 - Prob. 11RQCh. 23 - Prob. 12RQCh. 23 - Prob. 13RQCh. 23 - Prob. 14RQCh. 23 - Prob. 15RQCh. 23 - Prob. 16RQCh. 23 - Prob. 17RQCh. 23 - Prob. 18RQCh. 23 - Prob. 19RQCh. 23 - Prob. 20RQCh. 23 - Prob. 21RQCh. 23 - SERIES A EXERCISES IDENTIFICATION OF OPERATING,...Ch. 23 - CHANGE IN CASH AND CASH EQUIVALENTS Olsen Companys...Ch. 23 - Prob. 3SEACh. 23 - Prob. 4SEACh. 23 - GAINS AND LOSSES ON THE SALE OF LONG-TERM ASSETS...Ch. 23 - Prob. 6SEACh. 23 - Prob. 7SEACh. 23 - CASH PAID FOR INTEREST Ball Companys income...Ch. 23 - Prob. 9SPACh. 23 - Prob. 10SPACh. 23 - COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Horn...Ch. 23 - EXPANDED STATE MENT OF CASH FLOWS Financial...Ch. 23 - Prob. 1SEBCh. 23 - Prob. 2SEBCh. 23 - Prob. 3SEBCh. 23 - Prob. 4SEBCh. 23 - Prob. 5SEBCh. 23 - Prob. 6SEBCh. 23 - Prob. 7SEBCh. 23 - Prob. 8SEBCh. 23 - Prob. 9SPBCh. 23 - Prob. 10SPBCh. 23 - COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES...Ch. 23 - EXPANDED STATEMENT OF CASH FLOWS Financial...Ch. 23 - MANAGING YOUR WRITING Direct Method A friend of...Ch. 23 - MASTERY PROBLEM Financial statements for...Ch. 23 - CHALLENGE PROBLEM The long-term liabilities...
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- COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Horn Companys condensed income statement for the year ended December 31, 20-2, was as follows: Additional information obtained from Horns comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, was as follows: Depreciation expense for 20-2, included in operating expenses on the income statement, was 32,000. REQUIRED Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2.arrow_forwardCOMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Horn Companys condensed income statement for the year ended December 31, 20-2, was as follows: Additional information obtained from Horns comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, was as follows: Depreciation expense for 20-2, included in operating expenses on the income statement, was 32,000. REQUIRED Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2. SCHEDULE FOR CALCULATION OF CASH GENERATED FROM OPERATING ACTIVITIES Using the information provided in Problem 23-9A for Horn Company, prepare the following: 1. A schedule for the calculation of cash generated from operating activities for Horn Company for the year ended December 31, 20-2. 2. A partial statement of cash flows for Horn Company reporting cash from operating activities under the direct method for the year ended December 31, 20-2.arrow_forwardCOMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Powell Companys condensed income statement for the year ended December 31, 20-2, was as follows: Additional information obtained from Horns comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, was as follows: Depreciation expense for 20-2, included in operating expenses on the income statement, was 32,000. REQUIRED Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2. SCHEDULE FOR CALCULATION OF CASH GENERATED FROM OPERATING ACTIVITIES Using the information provided in Problem 23-11B for Powell Company, prepare the following: 1. A schedule for the calculation of cash generated from operating activities for Powell Company for the year ended December 31, 20-2. 2. A partial statement of cash flows for Powell Company reporting cash from operating activities under the direct method for the year ended December 31, 20-2.arrow_forward
- Smoltz Company reported the following information for the current year: cost of goods sold, $252,500; increase in inventory, $21,700; and increase in accounts payable, $12,200. What is the amount of cash paid to suppliers that Smoltz would report on its statement of cash flows under the direct method? a. $218,600 c. $262,000 b. $243,000 d. $286,400arrow_forwardDetermining Net Cash Flow from Operating Activities Presented below are selected balance sheet information and the income statement for Burch Company. Selected Balance Sheet Information Jan. 1 Dec. 31 Cash $8,600 $17,500 Accounts receivable 8,000 10,500 Inventory 22,500 21,000 Accounts payable 10,000 11,200 Income taxes payable 2,500 1,100 Burch Company Income Statement For the year ended December 31 Sales $250,000 Cost of goods sold (160,000) Depreciation expense (20,400) Other expenses (35,000) Income tax expense (12,000) Net income $22,600 Required: Compute the net cash flows from operating activities using the indirect method. 43,000 Xarrow_forwardCompute Cash Provided by Operating Activities Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2. Use a minus to indicate any decreases in cash or cash outflows. Horn Company's condensed income statement for the year ended December 31, 20-2, was as follows: Net sales $1,220,000 Cost of goods sold 740,000 Gross profit $480,000 Operating expenses 142,000 Operating income $338,000 Other revenues and expenses: Interest revenue $420 Interest expense (1,200) (780) Income before taxes $337,220 Income tax expense 118,000 Net income $219,220 Additional information obtained from Horn's comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, was as follows: 20-2 20-1 Accounts receivable $135,000 $122,600 Merchandise inventory 145,300 158,900 Accounts payable 45,000 87,100 Income tax…arrow_forward
- Cash Flows from (used for) Operating Activities—Direct Method The income statement for Stallion Company for the current year ended June 30 and balances of selected accounts at the beginning and end of the year are as follows: Sales $374,500 Cost of merchandise sold 129,500 Gross profit $245,000 Operating expenses: Depreciation expense $32,400 Other operating expenses 96,910 Total operating expenses 129,310 Income before income tax $115,690 Income tax expense 33,290 Net income $82,400 End of Year Beginning of Year Accounts receivable (net) $30,510 $26,260 Inventories 77,670 67,500 Prepaid expenses 12,210 13,320 Accounts payable (merchandise creditors) 56,780 52,710 Accrued expenses payable (operating expenses) 16,090 17,600 Income tax payable 3,700 3,700 Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the direct method. Use the minus sign to indicate…arrow_forwardThe following information pertains to Peak Heights Company: Income Statement for Current Year Sales $ 85,300 Expenses Cost of goods $ sold 51,675 Depreciation 8,100 expense Salaries 12,000 71,775 expense Net income $ 13,525 Partial Balance Prior Sheet Current year year Accounts $ $ 9,900 receivable 14,400 Inventory 13,700 8,300 Salaries payable 1,550 850 Required: Present the operating activities section of the statement of cash flows for Peak Heights Company using the indirect method. Note: List cash outflows as negative amounts. PEAK HEIGHTS COMPANY Statement of Cash Flows (Partial) Cash flows from operating activities: Accounts receivable increasearrow_forwardSubject: acountingarrow_forward
- Help Sa Hampton Company reports the following information for its recent calendar year. Income Statement Data Sales Selected Year-End Balance Sheet Data $ 78,000 Accounts receivable increase $ 7,000 Expenses: Cost of goods sold Salaries expense Depreciation expense Inventory decrease 3, 000 900 42, 000 Salaries payable increase 10, 000 4,000 $ 22,000 Net income Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities-indirect method Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilitiesarrow_forwardPrint Item Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $149,000. Depreciation recorded on store equipment for the year amounted to $24,600. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $58,710 $53,430 Accounts receivable (net) 42,100 39,480 Merchandise inventory 57,480 60,110 Prepaid expenses 6,460 5,080 Accounts payable (merchandise creditors) 55,010 50,540 Wages payable 30,060 33,020 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: $ Adjustments to reconcile net income to…arrow_forwardSales Expenses Income Statement for Current Year Cost of goods sold Depreciation expense Salaries expense Net income Partial Balance Sheet Accounts receivable Inventory Salaries payable $ 51,875 7,900 10,500 $ 85,800 Cash flows from operating activities: 70,275 $ 15,525 Current year PEAK HEIGHTS COMPANY Statement of Cash Flows (Partial) $ 10,100 12, 200 1,640 Required: Present the operating activities section of the statement of cash flows for Peak Heights Company using the indirect method. Note: List cash outflows as negative amounts. Prior year $ 14,800 9,700 890 $arrow_forward
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