Homework Answers
| SOLUTION : REQUIREMENT A | ||||
| Statement of Cash Flows - Indirect Approach | ||||
| Amount in $ | Amount in $ | |||
| Net income | $ 77,500 | |||
| Cash flows from operating activities | ||||
| Adjustments for reconcile the net income to: | ||||
| Depreciation | $ 5,000 | |||
| Gain on sale of Equipment | $ -3,800 | |||
| Decrease in account receivable | $ 7,000 | |||
| Increase in inventory | $ -8,700 | |||
| Decrease in Prepaid expenses | $ 8,900 | |||
| Increase on account payable | $ 8,000 | |||
| Increase in salary payable | $ 800 | |||
| Decrease in unearned service Revenue | $ -2,050 | |||
| $ 15,150 | ||||
| Net cash from operating activities | $ 92,650 | |||
| SOLUTION : REQUIREMENT B | ||||
| Statement of Cash Flows - Indirect Approach | ||||
| Amount in $ | Amount in $ | |||
| Cash flows from operating activities | ||||
| Cash Collected from Customer | $ 6,30,650 | |||
| Cash Paid to Supplies | $ -3,66,700 | |||
| Insurance Expenses | $ -29,100 | |||
| Salaries Paid | $ -1,42,200 | |||
| $ 92,650 | ||||
| Net cash from operating activities | $ 92,650 | |||
| Working notes: 1 | ||||
| Calculation of cash collection from customer | ||||
| Sales | $ 6,20,000 | |||
| Add: unearned service revenue Ope. Bal. | $ 750 | |||
| Less: Unearned service Revenue Cl Bal | $ 2,800 | |||
| Service Revenue | $ 5,700 | |||
| Net Revenue | $ 6,23,650 | |||
| Add: Opening AR | $ 29,300 | |||
| Less: Closing AR | $ 22,300 | |||
| Cash Collected | $ 6,30,650 | |||
| Working notes: 2 | ||||
| Calculation of purhcase of inventory | ||||
| Cost of Goods Sold | $ 3,66,000 | |||
| Add: Closing inventory | $ 57,200 | |||
| Less : Opening Inventory | $ 48,500 | |||
| Material Purhcased | $ 3,74,700 | |||
| Calculation of amount paid to supplied | ||||
| Op. Balance of Acct Payabl e | $ 19,000 | |||
| Add: Purchases | $ 3,74,700 | |||
| Less: Cl. Balance of Account payable | $ 27,000 | |||
| Cash paid | $ 3,66,700 | |||
Add Answer to:
Account Title Year 2 Year 1 Accounts $22,300 $29,300 receivable Merchandise 48,500 57,200 inventory Prepaid insurance 1...
Stuart Brands, Inc., presents its statement of cash flows using the indirect method. The following accounts...
Stuart Brands, Inc., presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Stuart's Year 2 and Year 1 year-end balance sheets: Account Title Year 2 Year 1 Accounts $21,300 $28,000 receivable Merchandise 57,400 50,600 inventory Prepaid 18,000 24,500 insurance Accounts payable 23,900 19,100 Salaries payable 4,750 4,150 Unearned service 750 2,800 revenue The Year 2 income statement is shown below: Income Statement Sales $ 610,000 Cost of goods sold (371,000)...
Walton Brands, Inc., presents its statement of cash flows using the Indirect method. The following accounts...
Walton Brands, Inc., presents its statement of cash flows using the Indirect method. The following accounts and corresponding balances were drawn from Walton's Year 2 and Year 1 year-end balance sheets: Account Title Accounts receivable Merchandise inventory Prepaid insurance Accounts payable Salaries payable Unearned service revenue Year 2 $20,400 59,300 18,000 26,000 4,900 880 Year 1 $29,200 51,000 27,800 18,600 3,950 2,750 The Year 2 income statement is shown below: Income Statement Sales Cost of goods sold Gross margin Service...
Required information Problem 12-14A The direct versus the indirect method of determining cash flow from operating...
Required information Problem 12-14A The direct versus the indirect method of determining cash flow from operating activities LO 12-1, 12-2 The following information applies to the questions displayed below] Green Brands, Inc. (GBI) presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBl's Year 2 and Year 1 year-end balance sheets: Account Title Year 2 Year 1 Accounts receivable 23.000 29,00e 49,400 Merchandise inventory Prepaid insurance 56, 200 17,60e 27,80e...
The income statement and selected balance sheet information for Direct Products Company for the year ended...
The income statement and selected balance sheet information for Direct Products Company for the year ended December 31, 2017 are as follows: Income Statement Sales Revenue Expenses: Cost of Goods Sold Depreciation Expense Salaries Expense Rent Expense Insurance Expense Interest Expense Utilities Expense 21.000 2.000 9.000 4,500 1,900 1.800 1,400 Net Income $ 7.000 2016 $ 580 770 Selected Balance Sheet Accounts 2017 Accounts Receivable $ 560 Merchandise Inventory 990 Accounts Payable 440 Prepaid Rent 25 Prepaid Insurance Salaries Payable...
Selected balance sheet information and the income statement for Fountainhead Corporation for the current year are...
Selected balance sheet information and the income statement for
Fountainhead Corporation for the current year are presented
below.
Selected balance sheet information and the income statement for Fountainhead Corporation for the current year are presented below Selected Balance Sheet Accounts Prior Year Current Year Accounts Receivable Merchandise Inventory Prepaid Rent Accounts Payable Salaries and Wages Payable $ 21,300 $14,500 31,900 0 21,200 5,700 29,000 1,900 16,400 3,800 Income Statement $435,000 Sales Revenue Expenses Cost of Goods Sold Depreciation Expense Salaries...
Required information [The following information applies to the questions displayed below.] Lansing Company's current-year income statement...
Required information [The following information applies to the questions displayed below.] Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and prior years follow. LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue $ 151,200 Expenses Cost of goods sold 60,000 Depreciation expense 21,000 Salaries expense 36,000 Rent expense 10,800 Insurance expense 5,600 Interest expense 5,400 Utilities expense 4,600 Net income 7,800 LANSING COMPANY Selected Balance Sheet Accounts At December...
The income statement and selected balance sheet information for Direct Products Company for the year ended...
The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are presented below. $56.600 Income Statement Sales Revenue Expenses Cost of Goods Sold Depreciation Expense Salaries and Wages Expense Rent Expense Insurance Expense Interest Expense Utilities Expense Net Income 25,000 2,800 9.800 5,300 2,300 2,200 1,800 $ 7,400 Selected Balance Sheet Accounts Ending Balances Accounts Receivable $ 575 Inventory Accounts Payable Prepaid Rent Prepaid Insurance Salaries and Wages Payable Utilities Payable Beginning...
(The following information applies to the questions displayed below.) Lansing Company's current-year income statement and selected...
(The following information applies to the questions displayed below.) Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and prior years follow. LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue $106,200 Expenses Cost of goods sold 45,000 Depreciation expense 13,500 Salaries expense 21,000 Rent expense 9,300 Insurance expense 4,100 Interest expense 3,900 Utilities expense 3,100 Net income $ 6,300 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current...
The income statement and selected balance sheet information for Direct Products Company for the year ended...
The income statement and selected balance sheet information for Direct Products Company for the year ended December 31, 2017 are as follows: $ 48,600 Income Statement Sales Revenue Expenses : Cost of Goods Sold Depreciation Expense Salaries Expense Rent Expense Insurance Expense Interest Expense Utilities Expense 21,000 2,000 9,000 4,500 1,900 1,800 1,400 Net Income $ 7,000 Selected Balance Sheet Accounts 2017 Accounts Receivable $ 560 Merchandise Inventory 990 Accounts Payable 440 Prepaid Rent 25 Prepaid Insurance 25 Salaries Payable...
The income statement and selected balance sheet information for Direct Products Company for the year ended...
The income statement and selected balance sheet information for Direct Products Company for the year ended December 31, 2017 are as follows: $48,600 Income Statement Sales Revenue Expenses: Cost of Goods Sold Depreciation Expense Salaries Expense Rent Expense Insurance Expense Interest Expense Utilities Expense 21,eee 2. eee 9,000 4,500 1,900 1,800 1,400 Net Income $ 7,eee 990 Selected Balance Sheet Accounts 2017 Accounts Receivable $ 560 Merchandise Inventory Accounts Payable 440 Prepaid Rent 25 Prepaid Insurance Salaries Payable Utilities Payable...
Stuart Brands, Inc., presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Stuart's Year 2 and Year 1 year-end balance sheets: Account Title Year 2 Year 1 Accounts $21,300 $28,000 receivable Merchandise 57,400 50,600 inventory Prepaid 18,000 24,500 insurance Accounts payable 23,900 19,100 Salaries payable 4,750 4,150 Unearned service 750 2,800 revenue The Year 2 income statement is shown below: Income Statement Sales $ 610,000 Cost of goods sold (371,000)...
Walton Brands, Inc., presents its statement of cash flows using the Indirect method. The following accounts and corresponding balances were drawn from Walton's Year 2 and Year 1 year-end balance sheets: Account Title Accounts receivable Merchandise inventory Prepaid insurance Accounts payable Salaries payable Unearned service revenue Year 2 $20,400 59,300 18,000 26,000 4,900 880 Year 1 $29,200 51,000 27,800 18,600 3,950 2,750 The Year 2 income statement is shown below: Income Statement Sales Cost of goods sold Gross margin Service...
Required information Problem 12-14A The direct versus the indirect method of determining cash flow from operating activities LO 12-1, 12-2 The following information applies to the questions displayed below] Green Brands, Inc. (GBI) presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBl's Year 2 and Year 1 year-end balance sheets: Account Title Year 2 Year 1 Accounts receivable 23.000 29,00e 49,400 Merchandise inventory Prepaid insurance 56, 200 17,60e 27,80e...
The income statement and selected balance sheet information for Direct Products Company for the year ended December 31, 2017 are as follows: Income Statement Sales Revenue Expenses: Cost of Goods Sold Depreciation Expense Salaries Expense Rent Expense Insurance Expense Interest Expense Utilities Expense 21.000 2.000 9.000 4,500 1,900 1.800 1,400 Net Income $ 7.000 2016 $ 580 770 Selected Balance Sheet Accounts 2017 Accounts Receivable $ 560 Merchandise Inventory 990 Accounts Payable 440 Prepaid Rent 25 Prepaid Insurance Salaries Payable...
Selected balance sheet information and the income statement for
Fountainhead Corporation for the current year are presented
below.
Selected balance sheet information and the income statement for Fountainhead Corporation for the current year are presented below Selected Balance Sheet Accounts Prior Year Current Year Accounts Receivable Merchandise Inventory Prepaid Rent Accounts Payable Salaries and Wages Payable $ 21,300 $14,500 31,900 0 21,200 5,700 29,000 1,900 16,400 3,800 Income Statement $435,000 Sales Revenue Expenses Cost of Goods Sold Depreciation Expense Salaries...
Required information [The following information applies to the questions displayed below.] Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and prior years follow. LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue $ 151,200 Expenses Cost of goods sold 60,000 Depreciation expense 21,000 Salaries expense 36,000 Rent expense 10,800 Insurance expense 5,600 Interest expense 5,400 Utilities expense 4,600 Net income 7,800 LANSING COMPANY Selected Balance Sheet Accounts At December...
The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are presented below. $56.600 Income Statement Sales Revenue Expenses Cost of Goods Sold Depreciation Expense Salaries and Wages Expense Rent Expense Insurance Expense Interest Expense Utilities Expense Net Income 25,000 2,800 9.800 5,300 2,300 2,200 1,800 $ 7,400 Selected Balance Sheet Accounts Ending Balances Accounts Receivable $ 575 Inventory Accounts Payable Prepaid Rent Prepaid Insurance Salaries and Wages Payable Utilities Payable Beginning...
(The following information applies to the questions displayed below.) Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and prior years follow. LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue $106,200 Expenses Cost of goods sold 45,000 Depreciation expense 13,500 Salaries expense 21,000 Rent expense 9,300 Insurance expense 4,100 Interest expense 3,900 Utilities expense 3,100 Net income $ 6,300 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current...
The income statement and selected balance sheet information for Direct Products Company for the year ended December 31, 2017 are as follows: $ 48,600 Income Statement Sales Revenue Expenses : Cost of Goods Sold Depreciation Expense Salaries Expense Rent Expense Insurance Expense Interest Expense Utilities Expense 21,000 2,000 9,000 4,500 1,900 1,800 1,400 Net Income $ 7,000 Selected Balance Sheet Accounts 2017 Accounts Receivable $ 560 Merchandise Inventory 990 Accounts Payable 440 Prepaid Rent 25 Prepaid Insurance 25 Salaries Payable...
The income statement and selected balance sheet information for Direct Products Company for the year ended December 31, 2017 are as follows: $48,600 Income Statement Sales Revenue Expenses: Cost of Goods Sold Depreciation Expense Salaries Expense Rent Expense Insurance Expense Interest Expense Utilities Expense 21,eee 2. eee 9,000 4,500 1,900 1,800 1,400 Net Income $ 7,eee 990 Selected Balance Sheet Accounts 2017 Accounts Receivable $ 560 Merchandise Inventory Accounts Payable 440 Prepaid Rent 25 Prepaid Insurance Salaries Payable Utilities Payable...
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