New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
public accounting
Accounting 23rd Edition Carl S. Warren - Solutions
=+ (b) What was the effect of the transaction on cash flows?
=+(c) How should the transaction be reported in the statement of cash flows if cash flows from operating activities are reported by the indirect method?
=+Identify whether each of the following would be reported as an operating, investing, or financing activity in the statement of cash flows.a. Issuance of common stockd. Retirement of bonds payableb. Purchase of lande. Payment for administrative expensesc. Payment of accounts payablef. Cash
=+Identify whether each of the following would be reported as an operating, investing, or financing activity in the statement of cash flows.a. Payment for selling expensesd. Cash salesb. Issuance of bonds payablee. Purchase of investmentsc. Disposal of equipmentf. Collection of accounts receivable
=+Singh Corporation’s accumulated depreciation—equipment increased by $6,000, while $2,200 of patents were amortized between balance sheet dates. There were no purchases or sales of depreciable or
=+intangible assets during the year. In addition, the income statement showed a loss of $3,200 from the sale of investments. Reconcile a net income of $86,000 to net cash flow from operating activities.
=+Watson Corporation’s comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 2010 Dec. 31, 2009 Accounts receivable $30,000 $24,000 Inventory 58,000 49,500 Accounts payable 46,000 34,500 Dividends payable 14,000 18,000 Adjust net income of $320,000 for changes in
=+Chopra Corporation’s comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 2010 Dec. 31, 2009 Accounts receivable $15,000 $18,000 Inventory 10,000 8,600 Accounts payable 9,000 7,900 Dividends payable 27,500 29,500 Adjust net income of $115,000 for changes in
=+On its income statement for a recent year, Continental Airlines, Inc. reported a net loss of $68 million from operations. On its statement of cash flows, it reported $457 million of cash flows from operating activities.
=+Explain this apparent contradiction between the loss and the positive cash flows.
=+EX 16-1 Cash flows from operating activities—net loss obj. 1 State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows:a. Sold a new issue of $200,000 of bonds at 99.b. Purchased 4,000 shares of $35 par common stock as
=+e. Retired $250,000 of bonds, on which there was $2,500 of unamortized discount, for$260,000.f. Purchased land for $320,000 cash.g. Paid dividends of $2.00 per share. There were 25,000 shares issued and 4,000 shares of treasury stock.vh. Sold equipment with a book value of $50,000 for $72,000.
=+EX 16-2 Effect of transactions on cash flows obj. 1✔c. Cash receipt,$500,000 Identify the type of cash flow activity for each of the following events (operating, investing, or financing):a. Issued common stock. g. Purchased treasury stock.b. Redeemed bonds. h. Sold long-term investments.c.
=+EX 16-3 Classifying cash flows obj. 1 Indicate whether each of the following would be added to or deducted from net income in determining net cash flow from operating activities by the indirect method:a. Decrease in accounts receivable g. Increase in notes receivable due inb. Increase in notes
=+EX 16-4 Cash flows from operating activities—indirect method obj. 2 Chapter 16 Statement of Cash Flows 743 The net income reported on the income statement for the current year was $132,000.Depreciation recorded on store equipment for the year amounted to $21,800. Balances of the current asset
=+Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method.
=+EX 16-5 Cash flows from operating activities—indirect method obj. 2✔ Net cash flow from operating activities, $153,920 The net income reported on the income statement for the current year was $210,000.Depreciation recorded on equipment and a building amounted to $62,500 for the year.Balances
=+b. If the direct method had been used, would the net cash flow from operating activities have been the same? Explain.
=+EX 16-6 Cash flows from operating activities—indirect method objs. 1, 2✔ Cash flows from operating activities,$258,950 The income statement disclosed the following items for 2010:Depreciation expense $ 36,000 Gain on disposal of equipment 21,000 Net income 317,500
=+Balances of the current assets and current liability accounts changed between December 31, 2009, and December 31, 2010, as follows:Accounts receivable $5,600 Inventory 3,200*Prepaid insurance 1,200*Accounts payable 3,800*Income taxes payable 1,200 Dividends payable 850*Decrease Prepare the Cash
=+EX 16-7 Cash flows from operating activities—indirect method objs. 1, 2✔ Cash flows from operating activities,$328,700 The board of directors declared cash dividends totaling $152,000 during the current year. The comparative balance sheet indicates dividends payable of $42,000 at the
=+EX 16-8 Determining cash payments to stockholders obj. 2 744 Chapter 16 Statement of Cash Flows An analysis of the general ledger accounts indicates that office equipment, which cost$67,000 and on which accumulated depreciation totaled $22,500 on the date of sale, was sold for $38,600 during the
=+EX 16-9 Reporting changes in equipment on statement of cash flows obj. 2 An analysis of the general ledger accounts indicates that delivery equipment, which cost $96,000 and on which accumulated depreciation totaled $42,100 on the date of sale, was sold for $46,500 during the year. Using this
=+EX 16-10 Reporting changes in equipment on statement of cash flows obj. 2 On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows:
=+EX 16-11 Reporting land transactions on statement of cash flows obj. 2 ACCOUNT Land ACCOUNT NO.Balance Date Item Debit Credit Debit Credit 2010 Balance Purchased for cash Sold for $210,000 15 30 Jan.Feb.Oct.1,200,000 1,580,000 1,400,000 380,000 180,000
=+EX 16-12 Reporting stockholders’ equity items on statement of cash flows obj. 2 ACCOUNT Common Stock, $10 par ACCOUNT NO.Balance Date Item Debit Credit Debit Credit 2010 Balance, 60,000 shares 15,000 shares issued for cash 2,200-share stock dividend 111 30 Jan.Feb.June 1,200,000 1,500,000
=+Date Item Debit Credit Debit Credit 2010 Balance 15,000 shares issued for cash Stock dividend 111 30 Jan.Feb.June 200,000 680,000 759,200 480,000 79,200 Chapter 16 Statement of Cash Flows 745 ACCOUNT Bonds Payable ACCOUNT NO.
=+Balance Date Item Debit Credit Debit Credit 2010 Balance Retire bonds Issue bonds 13 30 Jan.July 500,000 400,000 700,000 100,000 300,000
=+ACCOUNT Discount on Bond Payable ACCOUNT NO.Balance Date Item Debit Credit Debit Credit 2010 Balance Retire bonds Issue bonds Amortize discount 13 30 31 Jan.July Dec.22,500 14,500 34,500 32,750 20,000 8,000 1,750
=+ACCOUNT Land ACCOUNT NO.Balance Date Item Debit Credit Debit Credit 2010 Balance Purchased for cash Purchased with long-term mortgage note 110 20 Jan.Feb.Nov.260,000 670,000 1,210,000 410,000 540,000
=+EX 16-13 Reporting land acquisition for cash and mortgage note on statement of cash flows obj. 2 On the basis of the details of the following bonds payable and related discount accounts, indicate the items to be reported in the Financing section of the statement of cash flows, assuming no gain
=+EX 16-14 Reporting issuance and retirement of long-term debt obj. 2 ACCOUNT Retained Earnings ACCOUNT NO.Balance Date Item Debit Credit Debit Credit 2010 Balance Stock dividend Cash dividend Net income 130 30 31 Jan.June Dec.1,000,000 876,800 761,000 720,000 1,481,000 123,200 115,800
=+746 Chapter 16 Statement of Cash Flows Sanhueza, Inc., reported a net cash flow from operating activities of $162,500 on its statement of cash flows for the year ended December 31, 2010. The following information was reported in the Cash Flows from Operating Activities section of the statement
=+Gain on sale of investments 6,000 Increase in accounts payable 2,400 Increase in prepaid expenses 1,350 Increase in accounts receivable 6,500 Determine the net income reported by Sanhueza, Inc., for the year ended December 31, 2010.
=+EX 16-15 Determining net income from net cash flow from operating activities obj. 2✔ Net income,$155,350 Selected data derived from the income statement and balance sheet of Jones Soda Co.for a recent year are as follows:Income statement data (in thousands):Net earnings $4,574 Depreciation
=+a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows using the indirect method for Jones Soda Co. for the year.
=+b. Interpret your results in part (a).
=+EX 16-16 Cash flows from operating activities—indirect method obj. 2✔ Net cash flow from operating activities, $3,048 The comparative balance sheet of Tru-Built Construction Inc. for December 31, 2010 and 2009, is as follows:Dec. 31, 2010 Dec. 31, 2009 Assets Cash . . . . . . . . . . . . . .
=+The following additional information is taken from the records:a. Land was sold for $25.b. Equipment was 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 $65 credit to Retained Earnings for net income.
=+f. There was a $20 debit to Retained Earnings for cash dividends declared.
=+Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
=+EX 16-17 Statement of cash flows—indirect method obj. 2✔ Net cash flow from operating activities, $30 Chapter 16 Statement of Cash Flows 747 The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following:
=+a. If sales for the current year were $685,000 and accounts receivable decreased by$43,500 during the year, what was the amount of cash received from customers?
=+b. If income tax expense for the current year was $46,000 and income tax payable decreased by $5,200 during the year, what was the amount of cash payments for income tax?
=+EX 16-19 Cash flows from operating activities—direct method obj. 3✔a. $728,500 The cost of merchandise sold for Kohl’s Corporation for a recent year was $9,891 million. The balance sheet showed the following current account balances (in millions):Balance, Balance, End of Year Beginning of
=+Determine the amount of cash payments for merchandise.
=+EX 16-20 Cash paid for merchandise purchases obj. 3 Selected data taken from the accounting records of Lachgar Inc. for the current year ended December 31 are as follows:Balance, Balance, December 31 January 1 Accrued expenses payable (operating expenses) $ 5,590 $ 6,110 Accounts payable
=+EX 16-21 Determining selected amounts for cash flows from operating activities—direct method obj. 3✔b. $77,870 List the errors you find in the following statement of cash flows. The cash balance at the beginning of the year was $100,320. All other amounts are correct, except the cash balance
=+Devon Inc.Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities:Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $148,080 Adjustments to reconcile net income to net cash flow from operating activities:Depreciation
=+Cash paid for dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,000 _________ Net cash flow provided by financing activities . . . . . . . . . . . . . . . 182,400 ________ Increase in cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
=+EX 16-18 Statement of cash flows—indirect method obj. 2 748 Chapter 16 Statement of Cash Flows The income statement of Kodiak Industries Inc. for the current year ended June 30 is as follows:Sales . . . . . . . . . . . . . . . . . . . . . . . . . . $364,800 Cost of merchandise sold . . . . . .
=+Changes in the balances of selected accounts from the beginning to the end of the current year are as follows:Increase Decrease*Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . $8,400*Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,800
=+EX 16-22 Cash flows from operating activities—direct method obj. 3✔ Net cash flow from operating activities, $69,760 During the current year, the cost of merchandise sold was $448,500, and the operating expenses other than depreciation were $78,000. The direct method is used for presenting
=+Beginning End of Year of Year Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . $16,300 $14,190 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,900 36,410 Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,600
=+EX 16-23 Cash flows from operating activities—direct method obj. 3✔ Net cash flow from operating activities, $56,490 Chapter 16 Statement of Cash Flows 749 Morrocan Marble Company has cash flows from operating activities of $300,000. Cash flows used for investments in property, plant, and
=+Determine the free cash flow for Morrocan Marble Company.
=+EX 16-24 Free cash flow The financial statements for Nike, Inc., are provided in Appendix E at the end of the text.Determine the free cash flow for the year ended May 31, 2007. Assume that 90% of additions to property, plant and equipment were used to maintain productive capacity.
=+EX 16-25 Free cash flow Problems Series A The comparative balance sheet of Mavenir Technologies Inc. for December 31, 2010 and 2009, is shown as follows:Dec. 31, 2010 Dec. 31, 2009 Assets Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 312,880 $ 292,960 Accounts
=+Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . 629,680 602,160 ___________ ___________ ___________ ___________$1,181,040 $1,028,560 ___________ ___________ The following additional information was taken from the records:a. The investments were sold for $140,000 cash.b.
=+c. There were no disposals of equipment during the year.d. The common stock was issued for cash.e. There was a $75,520 credit to Retained Earnings for net income.f. There was a $48,000 debit to Retained Earnings for cash dividends declared.
=+Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
=+PR 16-1A Statement of cash flows—indirect method obj. 2✔ Net cash flow from operating activities, $49,520 750 Chapter 16 Statement of Cash Flows The comparative balance sheet of Amelia Enterprises, Inc. at December 31, 2010 and 2009, is as follows:Dec. 31, 2010 Dec. 31, 2009 Assets Cash . . .
=+a. Net income, $126,000.b. Depreciation reported on the income statement, $41,700.
=+c. Equipment was purchased at a cost of $81,400, and fully depreciated equipment costing $22,400 was discarded, with no salvage realized.d. The mortgage note payable was not due until 2013, but the terms permitted earlier payment without penalty.
=+e. 7,000 shares of common stock were issued at $20 for cash.
=+f. Cash dividends declared and paid, $76,800.Instructions
=+Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
=+PR 16-2A Statement of cash flows—indirect method obj. 2✔ Net cash flow from operating activities, $169,600 The comparative balance sheet of Putnam Cycle Co. at December 31, 2010 and 2009, is as follows:Dec. 31, 2010 Dec. 31, 2009 Assets Cash . . . . . . . . . . . . . . . . . . . . . . . . . .
=+$2,658,600 $2,343,900 ___________ ___________ __________ __________ Liabilities and Stockholders’ Equity Accounts payable (merchandise creditors) . . . . . . . . $ 512,500 $ 532,400 Bonds payable . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000 0 Common stock, $1 par. . . . . . . .
=+PR 16-3A Statement of cash flows—indirect method obj. 2✔ Net cash flow from operating activities, ($92,000)Chapter 16 Statement of Cash Flows 751 The noncurrent asset, noncurrent liability, and stockholders’ equity accounts for 2010 are as follows:ACCOUNT Accumulated
=+Depreciation for year 126 31 Jan.Dec.88,200 62,200 16,300 78,500 26,000 ACCOUNT Equipment ACCOUNT NO.Balance Date Item Debit Credit Debit Credit 2010 Balance Discarded, no salvage Purchased for cash 126 11 Jan.Aug.252,600 226,600 284,600 26,000 58,000
=+ACCOUNT Accumulated Depreciation––Buildings ACCOUNT NO.Balance Date Item Debit Credit Debit Credit 2010 Balance Depreciation for year 131 Jan.Dec.212,400 14,600 227,000 ACCOUNT Land ACCOUNT NO.Balance Date Item Debit Credit Debit Credit 2010 Balance Realized $84,000 cash from sale 120
=+Balance Date Item Debit Credit Debit Credit 2010 Balance Acquired for cash 120 Jan.Apr.500,500 312,000 812,500 752 Chapter 16 Statement of Cash Flows Instructions
=+Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
=+ACCOUNT Retained Earnings ACCOUNT NO.Balance Date Item Debit Credit Debit Credit 2010 Balance Net loss Cash dividends 131 31 Jan.Dec.1,436,500 1,419,100 1,401,100 17,400 18,000
=+ACCOUNT Paid-In Capital in Excess of Par––Common Stock ACCOUNT NO.Balance Date Item Debit Credit Debit Credit 2010 Balance Issued 10,000 shares of common stock for $22 per share 17 Jan.Dec.310,000 210,000 520,000 ACCOUNT Common Stock, $1 Par ACCOUNT NO.Balance
=+Date Item Debit Credit Debit Credit 2010 Balance Issued 10,000 shares of common stock for $22 per share 17 Jan.Dec.65,000 10,000 75,000 ACCOUNT Bonds Payable ACCOUNT NO.Balance
=+Date Item Debit Credit Debit Credit 2010 May 1 Issued 20-year bonds 150,000 150,000 The comparative balance sheet of Rucker Photography Products Inc. for December 31, 2011 and 2010, is as follows:Dec. 31, 2011 Dec. 31, 2010
=+Assets Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 321,700 $ 339,700 Accounts receivable (net). . . . . . . . . . . . . . . . . . . . 283,400 273,700 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 505,500 491,400 Investments . . . . . . . .
=+PR 16-4A Statement of cash flows—direct method obj. 3✔ Net cash flow from operating activities, $146,800 Chapter 16 Statement of Cash Flows 753
=+The comparative balance sheet of Mavenir Technologies Inc. for December 31, 2010 and 2009, is as follows:Dec. 31, 2010 Dec. 31, 2009 Assets Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 312,880 $ 292,960 Accounts receivable (net). . . . . . . . . . . . . . . . . . . .
=+$1,181,040 $1,028,560 ___________ ___________ __________ __________ Liabilities and Stockholders’ Equity Accounts payable (merchandise creditors) . . . . . . . . $ 214,240 $ 202,480 Accrued expenses payable (operating expenses) . . . 21,120 26,320 Dividends payable . . . . . . . . . . . . . . .
=+PR 16-5A Statement of cash flows—direct method applied to PR 16-1A obj. 3✔ Net cash flow from operating activities, $49,520 Liabilities and Stockholders’ Equity
=+Accounts payable (merchandise creditors) . . . . . . . . $ 385,900 $ 374,200 Accrued expenses payable (operating expenses) . . . 31,700 35,400 Dividends payable . . . . . . . . . . . . . . . . . . . . . . . . . 4,400 3,200 Common stock, $1 par. . . . . . . . . . . . . . . . . . . . . . 20,000
=+$1,688,400 $1,464,600 __________ __________ __________ __________ The income statement for the year ended December 31, 2011, is as follows:Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,990,000 Cost of merchandise sold . . . . . . . . . . . . . . . . . . . 1,226,000
=+The following additional information was taken from the records:a. Equipment and land were acquired for cash.b. There were no disposals of equipment during the year.c. The investments were sold for $88,000 cash.d. The common stock was issued for cash.
=+e. There was a $10,000 debit to Retained Earnings for cash dividends declared.Instructions
=+Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.
=+754 Chapter 16 Statement of Cash Flows The income statement for the year ended December 31, 2010, is as follows:Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,950,699 Cost of merchandise sold . . . . . . . . . . . . . . . . . . . 1,200,430 __________ Gross profit . .
=+a. The investments were sold for $140,000 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 $48,000 debit to Retained Earnings for cash dividends declared.Instructions
=+Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.
=+Problems Series B The comparative balance sheet of House Construction Co. for June 30, 2010 and 2009, is as follows:June 30, 2010 June 30, 2009 Assets Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 41,600 $ 28,200 Accounts receivable (net). . . . . . . . . . . . . . .
=+________ ________$712,800 $530,400 _________ _________ Liabilities and Stockholders’ Equity Accounts payable (merchandise creditors) . . . . . . . . $121,000 $114,200 Accrued expenses payable (operating expenses) . . . 18,000 15,800 Dividends payable . . . . . . . . . . . . . . . . . . . . . .
=+$712,800 $530,400 _________ _________ The following additional information was taken from the records of House Construction Co.:a. Equipment and land were acquired for cash.b. There were no disposals of equipment during the year.c. The investments were sold for $54,000 cash.d. The common stock
=+Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
=+PR 16-1B Statement of cash flows—indirect method obj. 2✔ Net cash flow from operating activities, $86,600 Chapter 16 Statement of Cash Flows 755 The comparative balance sheet of TorMax Technology, Inc. at December 31, 2010 and
=+2009, is as follows:Dec. 31, 2010 Dec. 31, 2009 Assets Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 158,300 $ 128,900 Accounts receivable (net). . . . . . . . . . . . . . . . . . . . 237,600 211,500 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . .
=+Liabilities and Stockholders’ Equity Accounts payable (merchandise creditors) . . . . . . . . $ 299,100 $ 331,100 Dividends payable . . . . . . . . . . . . . . . . . . . . . . . . . 11,700 9,000 Salaries payable . . . . . . . . . . . . . . . . . . . . . . . . . . 28,200 31,100 Mortgage note
=+a. Net income, $184,150.b. Depreciation expense reported on the income statement: buildings, $18,450; machinery and equipment, $8,100.c. Patent amortization reported on the income statement, $5,000.d. A building was constructed for $207,000.e. A mortgage note for $80,000 was issued for cash.f.
Showing 2500 - 2600
of 7256
First
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
Last
Step by Step Answers
Get 50% OFF
Claim Now
