Use the Linderman Garden Supply, Inc., data from P11-39B. The cash amounts for Interest Revenue, Salaries Expense,
Question:
Use the Linderman Garden Supply, Inc., data from P11-39B. The cash amounts for Interest Revenue, Salaries Expense, Interest Expense, and Income Tax Expense are the same as the accrual amounts for these items.
Requirements
1. Prepare the 2018 statement of cash flows using the direct method.
2. How will what you learned in this problem help you evaluate an investment in Linderman Garden Supply, Inc.?
Transcribed Image Text:
Linderman Garden Supply, Inc. Comparative Balance Sheet December 31, 2018 and 2017 INCREASE (DECREASE) 2018 2017 Current Assets: $ 5,300 25,100 91,500 $ 6,500 $ (1,200) (1,400) 1,800 Cash and Cash Equivalents Accounts Receivable 26,500 89,700 Inventory Fixed Assets: Land 61,100 28,600 89,700 54,700 Equipment, Net Total Assets 5,700 49,000 $232,800 $ 33,500 $266,300 Current Liabilities: $ 30,900 $ 35,100 | $ (4,200) 28,400 2,200 Accounts Payable Accrued Liabilities 30,600 Long-Term Liabilities: Notes Payable Stockholders' Equity: 73,000 99,000 (26,000) Common Stock 88,500 43,300 64,600 23,900 Retained Earnings Total Liabilities and Stockholders' Equity 37,600 5,700 $232,800 $ 33,500 $266,300 Linderman Garden Supply, Inc. Income Statement Year Ended December 31, 2018 Revenues: Sales Revenue $216,000 Interest Revenue 8,300 Total Revenues $224,300 Expenses: Cost of Goods Sold $ 71,000 Salaries Expense Depreciation Expense Other Operating Expenses Interest Expense Income Tax Expense Total Expenses 27,300 4,700 10,200 11,900 29,800 154,900 $ 69,400 Net Income
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (9 reviews)
Req 1 Linderman Garden Supply Inc Statement of Cash Flows Year Ended December 31 2018 Cash flows fro...View the full answer
Answered By
Jinah Patricia Padilla
Had an experience as an external auditor in Ernst & Young Philippines and currently a Corporate Accountant in a consultancy company providing manpower to a 5-star hotel in Makati, Philippines, Makati Diamond Residences
5.00+
120+ Reviews
150+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
The calculation of mean that you learned in this chapter the sum of all data values divided by the number of values-is more precisely called the arithmetic mean. Other means include the geometric...
-
You learned in this chapter that cash is increased with a debit. When you deposit your paycheque in your account, however, the teller might say that he or she is going to credit your account. Why?
-
When preparing a statement of cash flows using the direct method, why must the sales revenue figure be adjusted to arrive at cash receipts from sales?
-
Prepare a personal SWOT analysis (Your personal Strengths and Weaknesses and the external macroeconomic Opportunities and Threats that all of your competitors will assess criteria examples Advantages...
-
Determine the evolution of the dynamical system in Example 1 when the predation parameter p is .2 in equation (3). (Give a formula for xk.) Does the owl population grow or decline? What about the...
-
What are offsetting open market operations? When would the Fed use an off setting open market purchase? An offsetting open market sale?
-
How does make determine whether a target needs to be rebuilt?
-
Glacier Products Inc. is a wholesaler of rock climbing gear. The company began operations on January 1, 2014. The following transactions relate to securities acquired by Glacier Products Inc., which...
-
Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below: Costs Number of employees Square metres of space occupied...
-
Jennifer Caratini has recently accepted the job as the foodservice director for Techmar Industries, a corporation with 1,000 employees. As their foodservice director, Jennifers role is to operate a...
-
The 2018 comparative balance sheet and income statement of Linderman Garden Supply, Inc., follow: Linderman Garden Supply, Inc., had no noncash investing and financing transactions during 2018....
-
To prepare the statement of cash flows, accountants for Kim & Associates, Inc., summarized 2018 activity in the Cash account as: Requirement Prepare the statement of cash flows of Kim & Associates,...
-
Why do eukaryotic cells require a nucleus as a separate compartment when prokaryotic cells can manage perfectly well without?
-
When Medicare price controls were placed on physicians fees in 1992, which specialists increased their procedure volume the most?
-
In your view, do you believe that a comprehensive records management strategy is more crucial for industries dealing with sensitive information, such as healthcare and finance, compared to other...
-
What political platform from one the Philippine presidential candidates will help improve the credit standing of the Philippines and why?
-
You are working in the finance department at Auto Supply Inc. during your co-op work term. The CFO knows you have just taken a tax course and has asked you to do some research for him. Consider the...
-
Understand strategic management and understand the details of the firm you selected, it's time to begin evaluating how the firm is doing today and what actions the firm can or should take to improve...
-
Compute cost of goods sold for each of these two companies for the year ended December 31, 2017. Precision Unimart Manufacturing 3 Beginning inventory 4 Merchandise 5 Finished goods 6 Cost of...
-
Use integration by parts to evaluate the following. Check your answer by taking the derivative. x2e-xdx
-
On December 31, 2016, the Accounts Receivable balance of TDS Distribution, Inc., is $194,000. The Allowance for Uncollectible Accounts has a $1,200 credit balance. TDS Distribution, Inc., prepares...
-
River City Supply, Inc., uses the allowance method to account for uncollectible accounts. On December 31, 2016, Allowance for Uncollectible Accounts has a $375 credit balance. Journalize the year-end...
-
On April 30, 2016, Seattle First National Bank loaned $100,000 to Pugliese Produce, Inc., on a one-year, 8 percent note. Requirements 1. Compute the interest for the years ended December 31, 2016 and...
-
Hinrich Company traded machinery with a book value of $120,000 and a fair value of $200,000. It received in exchange from Noach Company a machine with a fair value of $180,000 and cash of $20,000....
-
You have just moved from Norfolk, Virginia (sea level), to Taos, New Mexico (high in the mountains), and you find yourself out of breath climbing a small hill. Three months later, climbing the same...
-
Starline is a small children's clothing manufacturer and retailer that has seen rapid growth in the last twelve months and a significant increase in employees. At a meeting of managers, a number of...
Study smarter with the SolutionInn App