The comparative balance sheet of Iglesias Inc. for December 31, 20Y3 and 20Y2, is shown as follows:
Question:
- The comparative balance sheet of Iglesias Inc. for December 31, 20Y3 and 20Y2, is shown as follows:
1 | Dec. 31, 20Y3 | Dec. 31, 20Y2 | |
2 | Assets | ||
3 | Cash | $625,680.00 | $586,230.00 |
4 | Accounts receivable (net) | 228,100.00 | 208,850.00 |
5 | Inventories | 640,910.00 | 617,650.00 |
6 | Investments | 0.00 | 240,620.00 |
7 | Land | 328,090.00 | 0.00 |
8 | Equipment | 704,540.00 | 553,320.00 |
9 | Accumulated depreciation-equipment | (166,310.00) | (147,840.00) |
10 | Total assets | $2,361,010.00 | $2,058,830.00 |
11 | Liabilities and Stockholders' Equity | ||
12 | Accounts payable | $425,280.00 | $404,550.00 |
13 | Accrued expenses payable | 41,990.00 | 52,020.00 |
14 | Dividends payable | 24,190.00 | 20,170.00 |
15 | Common stock, $4 par | 142,000.00 | 106,000.00 |
16 | Excess of paid-in capital over par | 416,700.00 | 279,900.00 |
17 | Retained earnings | 1,310,850.00 | 1,196,190.00 |
18 | Total liabilities and stockholders' equity | $2,361,010.00 | $2,058,830.00 |
Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:
a. | The investments were sold for $279,190 cash. |
b. | Equipment and land were acquired for cash. |
c. | There were no disposals of equipment during the year. |
d. | The common stock was issued for cash. |
e. | There was a $211,240 credit to Retained Earnings for net income. |
f. | There was a $96,580 debit to Retained Earnings for cash dividends declared. |
Required:
Prepare statement of cash flows, using the indirect method of presentingcash flows from (used for) operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow for each section, if required. |
Labels and Amount Descriptions
Labels | |
---|---|
December 31, 20Y3 | |
For the Year Ended December 31, 20Y3 | |
Amount Descriptions | |
Cash received from sale of investments | |
Cash paid for purchase of land | |
Cash paid for purchase of equipment | |
Cash received from issuing common stock | |
Cash dividends | |
Decrease in accounts payable | |
Decrease in accounts receivable | |
Decrease in accrued expenses payable | |
Decrease in inventories | |
Depreciation | |
Gain on sale of investments | |
Increase in accounts payable | |
Increase in accounts receivable | |
Increase in accrued expenses payable | |
Increase in inventories | |
Loss on sale of investments | |
Net increase in cash | |
Net decrease in cash | |
Net cash flows from operating activities | |
Net cash flows used for operating activities | |
Net cash flows from investing activities | |
Net cash flows used for investing activities | |
Net cash flows from financing activities | |
Net cash flows used for financing activities | |
Net income |
Statement of Cash Flows
Prepare statement of cash flows, using the indirect method of presentingcash flows from (used for) operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow for each section, if required.
Iglesias Inc. |
Statement of Cash Flows |
1 | Cash flows from (used for) operating activities: | ||
2 | |||
3 | Adjustments to reconcile net income to net cash flows from operating activities: | ||
4 | |||
5 | |||
6 | Changes in current operating assets and liabilities: | ||
7 | |||
8 | |||
9 | |||
10 | |||
11 | |||
12 | Cash flows from (used for) investing activities: | ||
13 | |||
14 | |||
15 | |||
16 | |||
17 | Cash flows from (used for) financing activities: | ||
18 | |||
19 | |||
20 | |||
21 | |||
22 | Cash balance, January 1, 20Y3 | ||
23 | Cash balance, December 31, 20Y3 |
2). The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows:
1 | Dec. 31, 20Y6 | Dec. 31, 20Y5 | |
2 | Assets | ||
3 | Cash | $643,320.00 | $679,710.00 |
4 | Accounts receivable (net) | 567,060.00 | 547,290.00 |
5 | Inventories | 1,010,150.00 | 983,330.00 |
6 | Investments | 0.00 | 240,620.00 |
7 | Land | 520,090.00 | 0.00 |
8 | Equipment | 879,420.00 | 680,200.00 |
9 | Accumulated depreciation-equipment | (244,310.00) | (200,240.00) |
10 | Total assets | $3,375,730.00 | $2,930,910.00 |
11 | Liabilities and Stockholders' Equity | ||
12 | Accounts payable | $772,600.00 | $747,990.00 |
13 | Accrued expenses payable | 63,150.00 | 70,180.00 |
14 | Dividends payable | 8,990.00 | 7,370.00 |
15 | Common stock, $2 par | 56,000.00 | 32,000.00 |
16 | Excess of paid-in capital over par | 408,000.00 | 192,000.00 |
17 | Retained earnings | 2,066,990.00 | 1,881,370.00 |
18 | Total liabilities and stockholders' equity | $3,375,730.00 | $2,930,910.00 |
The income statement for the year ended December 31, 20Y6, is as follows:
1 | Sales | $5,978,640.00 | |
2 | Cost of merchandise sold | 2,452,460.00 | |
3 | Gross profit | $3,526,180.00 | |
4 | Operating expenses: | ||
5 | Depreciation expense | $44,070.00 | |
6 | Other operating expenses | 3,099,060.00 | |
7 | Total operating expenses | 3,143,130.00 | |
8 | Operating income | $383,050.00 | |
9 | Other expense: | ||
10 | Loss on sale of investments | (65,430.00) | |
11 | Income before income tax | $317,620.00 | |
12 | Income tax expense | 103,420.00 | |
13 | Net income | $214,200.00 |
Additional data obtained from an examination of the accounts in the ledger for 20Y6 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 $175,190 cash. | |
d. The common stock was issued for cash. | |
e. There was a $28,580 debit to Retained Earnings for cash dividends declared. |
Required:
Prepare statement of cash flows, using the direct method of presentingcash flows from (used for) operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow for each section, if required. |
Labels and Amount Descriptions
Labels | |
---|---|
December 31, 20Y6 | |
For the Year Ended December 31, 20Y6 | |
Amount Descriptions | |
Cash dividends | |
Cash paid for income taxes | |
Cash paid for merchandise | |
Cash paid for operating expenses | |
Cash paid for purchase of equipment | |
Cash paid for purchase of land | |
Cash received from customers | |
Cash received from issuing common stock | |
Cash received from sale of investments | |
Net cash flows from operating activities | |
Net cash flows from financing activities | |
Net cash flows from investing activities | |
Net cash flows used for operating activities | |
Net cash flows used for financing activities | |
Net cash flows used for investing activities | |
Net decrease in cash | |
Net increase in cash |
Statement of Cash Flows
Prepare statement of cash flows, using the direct method of presentingcash flows from (used for) operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow for each section, if required.
Canace Products Inc. |
Statement of Cash Flows |
1 | Cash flows from (used for) operating activities: | ||
2 | |||
3 | |||
4 | |||
5 | |||
6 | |||
7 | Cash flows from (used for) investing activities: | ||
8 | |||
9 | |||
10 | |||
11 | |||
12 | Cash flows from (used for) financing activities: | ||
13 | |||
14 | |||
15 | |||
16 | |||
17 | Cash balance, January 1, 20Y6 | ||
18 | Cash balance, December 31, 20Y6 |
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider