AApp2-4 Statement of Cash Flows: The financial statements of CWL Corp. for the 20X7 fiscal year...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
AApp2-4 Statement of Cash Flows: The financial statements of CWL Corp. for the 20X7 fiscal year follow (in thousands): Statement of Comprehensive Income, for the Year Ended 31 December 20X7: Sales Cost of goods sold Gross profit Depreciation expense Selling and administrative expenses Interest expense Gain on sale of fixed assets Earnings before income tax Income tax expense Earnings and comprehensive income Statement of Changes in Equity, for the Year Ended 31 December 20X7: $5,100 2,900 2,200 450 970 345 (140) 575 310 $ 265 Statement of Changes in Equity, for the Year Ended 31 December 20X7: Opening balance Comprehensive income Dividends-cash Share issuance; options Options recorded Bond conversion Share retirement Share retirement Closing balance Common Shares $ 3,100 200 1,400 (105) $4,595 Preferred Shares $500 (100) $400 = Cont'd Capital: Options $220 (10) 60 $270 = Common Stock Conversion Rights $500 (500) $0 = Cont'd Capital: Preferred Share Retirement 200 (200) $0 Retained Earnings $1,400 265 (135) (75) (315) $1,140 Statement December 31 of Financial Position, Year Ended Assets: Cash and cash equivalents Accounts receivable (net) Inventory Fixed assets Accumulated depreciation Total Liabilities and shareholders' equity: Accounts payable and accrued liabilities Income taxes payable Notes payable Bonds payable Discount on bonds payable 20X7 $ 650 1,340 2,295 7,160 (2,040) $9,405 $ 540 130 1,840 20X6 $ 890 1,420 2,170 7,300 (2,900) $8,880 $ 610 250 400 1,000 (120) Deferred income tax Common shares, no-par Preferred shares, no-par Contributed capital: stock options Common stock conversion rights, convertible bond Contributed capital: preferred share retirement Retained earnings Total 490 4,595 400 270 1,140 $9,405 820 3,100 500 220 500 200 1,400 $8,880 Additional information: 1. There is a stock option plan for executives, on which $60 of expense was recorded. Options were exercised during the year. 2. The bond payable was convertible and was converted during the year after discount amortization of $20 had been recorded. 3. Fixed assets with an original cost of $1,650 and a net book value of $340 were sold at a gain of $140. 4. Assume unexplained changes in accounts are from normal transactions. Required: 1. Prepare the statement of cash flows, using the two-step indirect method. Include a list of required note disclosure for non- Page 1645 cash transactions. 2. Prepare the separate disclosure of cash flow for interest paid, and income tax. 3. Repeat the operating activities section of the SCF, using the direct method of presentation. AApp2-4 Statement of Cash Flows: The financial statements of CWL Corp. for the 20X7 fiscal year follow (in thousands): Statement of Comprehensive Income, for the Year Ended 31 December 20X7: Sales Cost of goods sold Gross profit Depreciation expense Selling and administrative expenses Interest expense Gain on sale of fixed assets Earnings before income tax Income tax expense Earnings and comprehensive income Statement of Changes in Equity, for the Year Ended 31 December 20X7: $5,100 2,900 2,200 450 970 345 (140) 575 310 $ 265 Statement of Changes in Equity, for the Year Ended 31 December 20X7: Opening balance Comprehensive income Dividends-cash Share issuance; options Options recorded Bond conversion Share retirement Share retirement Closing balance Common Shares $ 3,100 200 1,400 (105) $4,595 Preferred Shares $500 (100) $400 = Cont'd Capital: Options $220 (10) 60 $270 = Common Stock Conversion Rights $500 (500) $0 = Cont'd Capital: Preferred Share Retirement 200 (200) $0 Retained Earnings $1,400 265 (135) (75) (315) $1,140 Statement December 31 of Financial Position, Year Ended Assets: Cash and cash equivalents Accounts receivable (net) Inventory Fixed assets Accumulated depreciation Total Liabilities and shareholders' equity: Accounts payable and accrued liabilities Income taxes payable Notes payable Bonds payable Discount on bonds payable 20X7 $ 650 1,340 2,295 7,160 (2,040) $9,405 $ 540 130 1,840 20X6 $ 890 1,420 2,170 7,300 (2,900) $8,880 $ 610 250 400 1,000 (120) Deferred income tax Common shares, no-par Preferred shares, no-par Contributed capital: stock options Common stock conversion rights, convertible bond Contributed capital: preferred share retirement Retained earnings Total 490 4,595 400 270 1,140 $9,405 820 3,100 500 220 500 200 1,400 $8,880 Additional information: 1. There is a stock option plan for executives, on which $60 of expense was recorded. Options were exercised during the year. 2. The bond payable was convertible and was converted during the year after discount amortization of $20 had been recorded. 3. Fixed assets with an original cost of $1,650 and a net book value of $340 were sold at a gain of $140. 4. Assume unexplained changes in accounts are from normal transactions. Required: 1. Prepare the statement of cash flows, using the two-step indirect method. Include a list of required note disclosure for non- Page 1645 cash transactions. 2. Prepare the separate disclosure of cash flow for interest paid, and income tax. 3. Repeat the operating activities section of the SCF, using the direct method of presentation.
Expert Answer:
Answer rating: 100% (QA)
1 CWL Corp Statement of Cash Flows For the Year Ended December 31 20X7 Operating Activities Net income 265 Adjustments to reconcile net income to net cash provided by operating activities Depreciation ... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
The operating activities section of the statement of cash flows for PepsiCo, Inc., owner of the Pepsi beverage brand, is shown as follows: a. Why are impairment and restructuring charges added to the...
-
The income statement and statement of cash flows for ABC Equipment Company for 2014 are provided below. Supplemental Information: Other current liabilities represent obligations for general and...
-
The income statement and statement of cash flows for ABC Equipment Company for 2017 are provided below. ABC Equipment Company Income Statement for the Year Ended December 31, 2017 ($ in millions)...
-
What is the atomic weight of a hypothetical element consisting of two isotopes, one with mass= 64.23 amu (36.00%), and one with mass=65.32 amu ( 64.00%) ? [Topic: isotope and molecular weight] 64.93...
-
According to the nonprofit group Zero Population Growth, 78% of the U.S. population now lives in urban areas. Scientists at Princeton University and the University of Wisconsin report that about 15%...
-
A cereal manufacturer makes two different kinds of cereal, Senior Citizen's Feast and Kids Go. Each pound of Senior Citizen's Feast requires 0.6 lb of wheat and 0.2 lb of vitamin-enriched syrup, and...
-
What is the difference between fees and costs?
-
A building with a cost of $780,000 has an estimated residual value of $90,000, has an estimated useful life of 40 years, and is depreciated by the straight-line method. (a) What is the amount of the...
-
1. Determine the appropriate conflict resolution style by analyzing the conflict with the questions/prompts on The Thomas-Kilmann Conflict Resolution Grid ( 500 Words).
-
The bank reconciliation prepared by Village-on-the-Lake Condos on May 31, 2020, is shown below: The Cash account in the general ledger appeared as follows on June 30: A list of deposits made and...
-
Pretty Gone Ltd commenced operations on 1 July 2015. Extracts from the statements of financial position of Pretty Gone Ltd as at 30 June 2017 and 30 June 2016 are as follows: Additional information ?...
-
What are the main differences between requirement-led and system-led development?
-
Have you ever seen or worked for an ineffective manager? Describe the behaviors that contributed to the managers ineffectiveness.
-
Why would you use multiple scenarios when refining and optimizing the benefit mix?
-
The selection of the BPM TOM components will impact how BPM is implemented within the organization. Why?
-
What are the various solution options regarding system development?
-
Firm AAA's earnings and dividends are expected to grow by a rate of 0.03 a year. This growth will stop after year 4. In year 5 and later, it will pay out all earnings as dividends. Assume next year's...
-
Write the given system without the use of matrices. D) - ()- d (x sin t + 8 (2+ 1)
-
Discuss at least two items that are important to the value of companies like Louis Vuitton (LVMH Group) (FRA) or adidas (DEU) but that are not recorded in their statements of financial position. What...
-
Cost of Land vs. BuildingEthics Tones Company purchased a warehouse in a downtown district where land values are rapidly increasing. Gerald Carter, controller, and Wilma Ankara, financial vice...
-
Aston plc performs year-end planning in November of each year before its calendar year ends in December. The preliminary estimated net income is £3 million. The CFO, Rita Warren, meets with the...
-
A scientist wants to determine whether people who live in places with high levels of air pollution get more colds than people in areas with little air pollution. Do you think it is possible to design...
-
Draw a simple random sample of eight animals from the list of 40 animals in the table. Exercises 2124 refer to the population of animals in the following table. The population is divided into four...
-
In the 1936 presidential election, Republican candidate Alf Landon challenged President Franklin Roosevelt. The Literary Digest magazine conducted a poll in which they mailed questionnaires to more...
Study smarter with the SolutionInn App