Ramirez Furniture Gallery, Inc., provided the following data from the companys records for the year ended May
Question:
a. Credit sales, $584,500
b. Loan to another company, $12,300
c. Cash payments to purchase plant assets, $72,100
d. Cost of goods sold, $312,400
e. Proceeds from issuance of common stock, $7,000
f. Payment of cash dividends, $48,300
g. Collection of interest, $4,600
h. Acquisition of equipment by issuing short-term note payable, $16,000
i. Payments of salaries, $78,000
j. Proceeds from sale of plant assets, $22,600, including $6,900 loss
k. Collections on accounts receivable, $428,500
l. Interest revenue, $3,500
m. Cash receipt of dividend revenue, $8,900
n. Payments to suppliers, $368,000
o. Cash sales, $191,300
p. Depreciation expense, $40,100
q. Proceeds from issuance of note payable, $24,500
r. Payments of long-term notes payable, $83,000
s. Interest expense and payments, $13,400
t. Salary expense, $75,800
u. Loan collections, $11,900
v. Proceeds from sale of investments, $9,500, including $4,400 gain
w. Payment of short-term note payable by issuing long-term-note payable, $94,000
x. Amortization expenses, $3,100
y. Income tax expense and payments, $38,300
z. Cash balance: May 31, 2009, $19,100; May 31, 2010, $14,500
Requirements
1. Prepare Ramirez Furniture Gallery, Inc.’s statement of cash flows for the year ended May 31, 2010. Use the direct method for cash flows from operating activities. Include an accompanying schedule of noncash investing and financing activities.
2. Evaluate 2010 from a cash-flows standpoint. Give your reasons.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
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