Impel Corporation's Year 2 and Year 1 balance sheets (not organized or classified) showed the following...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Impel Corporation's Year 2 and Year 1 balance sheets (not organized or classified) showed the following items: December 31 Year 2 Year 1 Debits Cash Accounts receivable Merchandise inventory Equipment Total $27,000 43,000 113,000 96.000 $279,000 $21,000 49,000 97,000 81.000 $248,000 Credits: Accumulated depreciation-equipment Common shares Retained earnings Total $25,000 135,000 119.000 $279,000 $16,000 135,000 97,000 $248,000 Additional information about the corporation's activities during Year 2 is as follows: a) Sales (all on credit) Cost of goods sold Depreciation expense Other operating expenses Net income $342,000 $185,000 9,000 108.000 302.000 $ 40,000 b) The only decrease in accounts receivable were customer receipts. c) All merchandise purchases were for cash. d) Equipment was purchased for $15,000 cash. e) The corporation declared and paid $18,000 of cash dividends during the year. Required: Prepare a statement of cash flows that follows the indirect method. Impel Corporation's Year 2 and Year 1 balance sheets (not organized or classified) showed the following items: December 31 Year 2 Year 1 Debits Cash Accounts receivable Merchandise inventory Equipment Total $27,000 43,000 113,000 96.000 $279,000 $21,000 49,000 97,000 81.000 $248,000 Credits: Accumulated depreciation-equipment Common shares Retained earnings Total $25,000 135,000 119.000 $279,000 $16,000 135,000 97,000 $248,000 Additional information about the corporation's activities during Year 2 is as follows: a) Sales (all on credit) Cost of goods sold Depreciation expense Other operating expenses Net income $342,000 $185,000 9,000 108.000 302.000 $ 40,000 b) The only decrease in accounts receivable were customer receipts. c) All merchandise purchases were for cash. d) Equipment was purchased for $15,000 cash. e) The corporation declared and paid $18,000 of cash dividends during the year. Required: Prepare a statement of cash flows that follows the indirect method.
Expert Answer:
Related Book For
Introduction to Financial Accounting
ISBN: 978-0133251036
11th edition
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick
Posted Date:
Students also viewed these accounting questions
-
The following information pertains to Ming Corp. at January 1, 2018: Common stock, $10 par, 50,000 shares authorized, 3,000 shares issued and outstanding Paid-in capital in excess of par, common...
-
Alaska Airlines showed the following items in its balance sheet as of December 31, 2011, the end of the fiscal year ($ in millions): Inventories and supplies .............. $ 44.3 Prepaid expenses...
-
If you prepared Cash Flow from Operations (CFO) using the direct method, you would need to indicate cash inflows and outflows on a line-by-line basis. Provide the following amounts: a. Cash inflows...
-
Consider the plane stress inhomogeneous case with only variation in elastic modulus given by E = E(y) = 1/ (Ay + B). Further assume that the Airy function depends only on y, = (y). Show that...
-
Reconsider the model given in Prob. 13.3-3. What are the KKT conditions for this model? Use these conditions to determine whether (x1, x2) = (0, 10) can be optimal.
-
Find the response of a simple pendulum numerically by solving the linearized equation: \[\ddot{\theta}+\frac{g}{l} \theta=0\] with \(\frac{g}{l}=0.01\) and plot the response, \(\theta(t)\), for \(0...
-
Explain each of the relationships outlined in the quadrants in Figure 10.1 (page 239). Detail the actions that would lead to a favourable change in direction in each of the four relationships...
-
Powers Rental Service had the following items that require adjustment at year-end. a. Earned $6,420 of revenue from the rental of equipment for which the customer had not yet paid. b. Interest of...
-
For the entries below, Identify the account to be debited and the account to be credited. Indicate which of the accounts is the Income statement account and which is the balance sheet account. Assume...
-
Marsha Design is an interior design and consulting firm. The firm uses a job order cost system in which each client represents an individual job. Marsha Design traces direct labor and travel costs to...
-
Calculate the effective bandwidth of the first order spectra collected on our Princeton Spectrometers with the slits set to 10 m. Remember that the monochromator has a focal length of 15.0 cm and a...
-
A manufacturer reports the information below for three recent years. Variable costing income Beginning finished goods inventory (units) Ending finished goods inventory (units) Year 1 $ 113,000 0...
-
Scenario: In an effort to close the "wage gap", a new bill is being proposed in your state that would require a 15% increase in wages for women across the board. It would apply to both public and...
-
E8-16A. Identify asset impairment (Learning Objective 8) 10-15 min. Mistry Ltd. has four assets. You are an accounting assistant who is in charge of identifying the recoverable amount and determining...
-
Imagine that you just completed a course in Financial Management for Entrepreneurs where you learned various techniques and tools in financial analysis. Your uncle Ben wants your advice regarding an...
-
What is the ratio of the average translational kinetic energy of a nitrogen molecule at a temperature of 3 0 5 K to the gravitational potential energy of a nitrogen - molecule - Earth system at the...
-
The population of an island is growing at a rate of 3% per year. a) The population growth of the island is governed by a linear discrete time dynamical system (DTDS) of the form Pt+1 = f(pt), where...
-
Let (X. A. p) be a measure space. Show that for any A,B A, we have the equality: (AUB)+(An B) = (A) + (B).
-
Separate reporting of the results of discontinued operations aids predicting future net income. Do you agree? Explain.
-
Accountants cannot capitalize improvements made to leased property by a tenant because the improvements become part of the leased property and therefore belong to the lessor. Do you agree? Explain.
-
Consider the following balance sheets ($ in millions): Company A paid $90 million to Company B stockholders for all their stock. The fair value of the plant assets of Company B is $40 million. The...
-
The steel beam has the cross sectional area shown. Determine the largest intensity of distributed load w that it can support so that the bending stress does not exceed max = 22 ksi. 8 ft- 8 ft W -8...
-
Determine the largest intensity of distributed load w 0 that the beam can support so that the maximum bending stress in the beam does not exceed max = 22ksi. Wo -12 ft. 12 ft- 8 in. 0.30 in. 0.3...
-
If w 0 = 0.5 kip/ft, determine the maximum bending stress in the beam. Wo 12 ft. 12 ft- 8 in. 0.30 in. 0.3 in.- 10 in. 0.30 in.
Study smarter with the SolutionInn App